Handle a new starter without a P45

When a new employee does not have a P45 from their previous employer, you must use the starter checklist to determine their correct tax code. This guide explains what to do.

Why employees might not have a P45

• First job - never worked before in the UK
• Gap in employment - not worked since 6 April
• Lost P45 - previous employer did not provide or employee lost it
• Self-employed - previously worked for themselves
• From overseas - first UK employment

If employee does not complete starter checklist

If the employee refuses or fails to complete the starter checklist:

• Use tax code 0T W1/M1 - no Personal Allowance, non-cumulative
• Employee will overpay tax - all earnings taxed from £0
• HMRC may issue correct code - after processing first FPS
• Employee can contact HMRC - to get correct code issued faster

Collecting employee information

Regardless of P45 status, you need:

• Full name - as shown on official documents
• Date of birth - for NI category determination
• National Insurance number - essential for HMRC records
• Home address - to determine Scottish/Welsh tax status
• Student loan status - plan type if applicable
• Right to work evidence - legal requirement to check

Reporting the new starter

Include the new employee on your FPS with:

• Starter declaration - A, B, or C from checklist
• Start date - first day of employment
• Tax code - based on starter declaration
• NI number - or indicate you are awaiting it

Tip - submit FPS on or before their first payday - HMRC will then send the correct tax code if different from your determination.