As an employer, you are required to tell HMRC when somebody leaves or retires, and deduct and pay the correct tax and National Insurance. Here DAS Law’s Bethan Mack answers some basic questions around P45s
What is a P45?
A P45 is a form an employer must issue to an employee when they leave their employment. It should contain details of salary and taxes paid to date in that tax year.
When should you issue one?
When an employee leaves the business.
Where can I get a P45 form from?
You can download the form from the Government’s website.
Is there a time limit on providing an employee with a P45?
An employer must simply provide a P45 without unreasonable delay, although there is no time frame specified.
Can I email an employee their P45?
HMRC have confirmed that P45’s can be sent to employees by email, however it remains standard practice for employers to provide a paper copy.
What happens to statutory maternity, paternity or adoption pay?
An employer must keep paying these until the end of an employee’s statutory leave, even if they stop working for you.
For more information about what you need to do when an employee leaves, visit the what to do when an employee leaves section of GOV.UK.
Further information on this topic can be found on DAS Businesslaw. To find out if you have access to this resource, please consult your policy documentation or contact your insurance broker.
If you are an insurance broker then you can quote and buy our products via DAS Connect, our E-Trade portal, or via your Acturis account.
About DAS Businesslaw
DAS Businesslaw can help policyholders create a range of documents such as ready-to-sign contracts (with built in e-signature functionality), agreements, policies and letters.
Customers can also access guidance on a wide range of legal matters such as new legislation, employment issues, crowdfunding, tax and financial planning, and data protection. The service also includes numerous COVID-19-specific templates and guides for businesses.
How to register
- Visit dasbusinesslaw.co.uk;
- Enter the voucher code found in your policy documentation into the ‘First time using DAS Businesslaw?’ box and click ‘Validate Voucher’;
- Fill out your name, email address and create a password, and then validate the confirmation email sent out.
Disclaimer: This information is for general guidance regarding rights and responsibilities and is not formal legal advice as no lawyer-client relationship has been created. Note that the information was accurate at the time of publication but laws may have since changed.