P45

Sophie1111

Hi, I've recently got a new job, which I start next week, however this new job pays weekly whereas my old job paid monthly and so I won't receive my P45 until the end of the month, even though I will be earning before that. I don't know how this works with the P45? I haven't ever earned enough money to pay tax as I am still a student, so would it make a difference if my new employer did not have my P45? The only thing that's ever come out of my wages is about £2 in national insurance last year (which would be on my P60, rather than my P45) although I'm not sure if NI is even relevant.
Thank you in advance!

Darksparkle

NI isn't relevant to your new employer.

If you don't have a P45 they'll have you complete a starter checklist.

Madbags

As above your employer will complete a starter checklist or P46.


This will probably have you as Statement B meaning you have had a job since the 5th April but is now your only job. This will also put you on a 1100L-W1 tax code so your tax is calculated on a week 1 basis as opposed to cumulatively.


You may over pay tax until the HMRC send you or your employer a tax code notice or you get your P45 for them to input the year to date values and tax code. This should then of course be repaid to you through the payroll software.


If as you say you're not earning enough to pay tax it shouldn't really make a difference to you either way and as above in the second post it won't have any bearing on your NI.

chrisbur

Madbags wrote: »

As above your employer will complete a starter checklist or P46.


This will probably have you as Statement B meaning you have had a job since the 5th April but is now your only job. This will also put you on a 1100L-W1 tax code so your tax is calculated on a week 1 basis as opposed to cumulatively.


You may over pay tax until the HMRC send you or your employer a tax code notice or you get your P45 for them to input the year to date values and tax code. This should then of course be repaid to you through the payroll software.


If as you say you're not earning enough to pay tax it shouldn't really make a difference to you either way and as above in the second post it won't have any bearing on your NI.

As you say probably not going to affect the OP due to low earnings (though without actual figures obviously cannot be 100% certain) but for most people in this situation there is a strong likelihood of underpaying tax. Being paid at the end of the month means that the OP will get a tax allowance to cover them until 5 September from their old employer, but the new employer will also be giving a tax allowance for the weeks that are paid up to 5 September. This overlap time gives double tax allowances which result in underpaid tax, which is then taken when the P45 is operated by the new employer.

Madbags

chrisbur wrote: »

As you say probably not going to affect the OP due to low earnings (though without actual figures obviously cannot be 100% certain) but for most people in this situation there is a strong likelihood of underpaying tax. Being paid at the end of the month means that the OP will get a tax allowance to cover them until 5 September from their old employer, but the new employer will also be giving a tax allowance for the weeks that are paid up to 5 September. This overlap time gives double tax allowances which result in underpaid tax, which is then taken when the P45 is operated by the new employer.

Indeed the opposite is also quite true especially when going from Monthly to Weekly.


I was going to mention the possibility of underpaying tax as well as overpaying it but it slipped my mind at the last minute.