Changing Employer - P45

Snuggles

I finish my current job on 2nd January, and start with a new employer on the 5th January. This means that at the end of Jan I will receive 2 days salary from my current employer, and will also be paid by the new employer from 5th - 31st Jan.

My current employer have told me they cannot send me my P45 until after they have paid me my final 2 days pay at the end of Jan. This obviously means I will have no P45 to give to my new employer when I start work.

Can anyone tell me what will happen? Will the new employer tax me at basic rate? If so, will the tax overpayment be refunded as soon as I give them my P45? Or should I fill in a P46?

chriiiiiiiis

If you complete form P46, and tick box B, you'll not be charged at the basic rate.

Your new employer will operate 603L on a non cumulative basis, which means their payroll system will tax you as though its first month in the tax year and so you won't get the benefit of your full personal allowance. You'll get any tax back that you've overpaid through your wages, as normal, when the P45 is operated.

It would be worth letting your new employer know that you'll have the P45 at the end of the January ready for February's pay.

chrisbur

If your old employer pays you at the end of January using a cumulative tax code(that is your normal tax code), and your new employer also pays you at the end of january using the emergency code (603L Month 1 which will be used if you tick box B on a P46) then you will be undertaxed. You will be getting a tax allowance for January from both employers.
This will correct itself when you hand in your P45 and any tax underpaid will then be deducted from your next salary.