A P45 is a document given to you when leaving an employer. It explains how much income you've earned and the tax you've paid so far in the tax year.
Why is it important?
If you left a job during the tax year, you'll use your P45 to complete employment details on your tax return. Earnr will ask for the following information about your old employer:
Employer name
Employer PAYE reference
Total pay in this employment
Total tax in this employment
When else is a P45 used?
The most common use of a P45 relates to starting a new job. You give part of the P45 to your new employer so that they can correctly deduct tax from your salary. In addition to income and tax, they'll see your National Insurance number, tax code and whether or not you're paying off a student loan.
What does a P45 look like?
