Is P45 useless if last job left before start of new tax year?

Steffen.Lindberg

If an employee starts a new job after the start of tax year (after 6th of April) and his last job ended before that, is P45 necessary? Presumably it is useless as a new tax code is issued and the tax-free amount is untouched (so no adjustments needed).

chrisbur

Steffen.Lindberg wrote: »

If an employee starts a new job after the start of tax year (after 6th of April) and his last job ended before that, is P45 necessary? Presumably it is useless as a new tax code is issued and the tax-free amount is untouched (so no adjustments needed).

There is a period at the start of each tax year (start date before 26/5 for this year)when a P45 from last tax year can be used for the tax code if it is L , this is updated by the amount all L codes were increased by. The pay and tax figures are ignored.
Starting after this date the P45 would result in the emergency tax code (currently 1100L)being used on a non-cumulative basis.

If the P45 was not handed in then a starter checklist would be used and provided you gave the details asked for the emergency tax code would be used. If the required details were not given a tax code of 0T would be used.
If on the starter checklist you advised that you had worked before this tax year you would be put on the emergency tax code on a non-cumulative basis and if you advised that this was your first job this tax year the emergency tax code would be applied on a cumulative basis.