Tax p45 etc help

LightKnow

Hi all, hope am posting in right section

Is it necessary to keep p45 ? If so how old or far back do I need go ?

Older payslips are no longer needed if no longer in that role ?

If I was unemployed for long periods and once I found work I got given p45 by job centre. Can I scrap them all ?

Sorry for basic questions,

Dazed_and_confused

Personally I have kept my P45's (not many thankfully!) for the past 10 years.

But that is probably overkill however they don't take up much space

LightKnow

Abit overkill lol, but I been keeping them because am unsure if they will come handy or for reference or something,

I don't have loads like , only dates back from 2010 . But was curious of the importance.

I do agree not like they actually take up space.

Pennywise

I've kept mine as far back as 1983 when I first started working. They take up no space at all, so why not keep them "just in case"?

I've had clients who've really struggled to prove they were employed many years ago when they've discovered their NIC history was short. With those who kept P45s it was a doddle to get their history corrected. For those without, it's been a nightmare and some havn't had their records corrected at all due to lack of "proof" of their employment.

00ec25

it depends
a P45 is only valid for the tax year it relates to and, crucially, if you changed jobs before the end of the tax year (5th April), and gave the P45 to your new employer, all the info on the P45 will be on your P60 as "earnings in previous employment"

a p60 should certainly be retained as that is the evidence of your earnings in a given tax year

retaining a p45 is really only relevant if you have no further employment that tax year, and therefore the p45 records the earnings in the tax year as you were not in employment on 5th April

alternatively you may wish to keep your P45 as it record your leaving date, and it may be useful in the future to have proof what that was if you want to dispute some historic entitlement

BoGoF

If you really want to keep them (and really there is no need for 10 years) why not scan them?

badmemory

P45s are pretty much irrelevant once you are in the next tax year. P60s are a different matter. I have all of mine - almost 50 & my last 2 P45s but those are for sentimental reasons not practical ones.


Some people have had problems proving that they have paid NI & gained the state pension entitlements. If they had kept their P60s they could have proved it.

LightKnow

Thanks to all the responses, am glad am not alone with keeping them and I wasn't aware they could be helpful in worst cases.

Also I don't have any p60s guess I keep hold of my p45

Another question, say if I have two banks and say for helping me mange my spending. I use my first bank to pay monthly payments and I transfer X amount to my second bank to only for buying . If am transferring between banks does this effect my tax ? Like hmrc won't think am earning more and tax me again ? Silly question but I thought ask, just in case

00ec25

Biil wrote: »

Thanks to all the responses, am glad am not alone with keeping them and I wasn't aware they could be helpful in worst cases.

Also I don't have any p60s guess I keep hold of my p45

oh boy, your storage habit needs to refocus then because if HMRC ever challenged you over your position for a given tax year they require the P60, not the p45, unless you can show you had no further work for the remainder of the tax year at which point the only thing you can offer is the p45


to reiterate, an employer has a legal duty to send to P60 to each employee still on its payroll on 5th April each year. They must send that by the 22nd of May or potentially they can be fined by HMRC


you are supposed to keep it

Biil wrote: »

Another question, say if I have two banks and say for helping me mange my spending. I use my first bank to pay monthly payments and I transfer X amount to my second bank to only for buying . If am transferring between banks does this effect my tax ? Like hmrc won't think am earning more and tax me again ? Silly question but I thought ask, just in case

of course not, a transfer is a transfer, not earned incomed

LightKnow

I appreciate all the help �� I understand what I need

MIGoddess

Hello - I have just received a P45 in the post - all three parts. All personal details correct, except the earnings. I have not left my employment, and my HR department don't know why it's been issued. Has anyone had a similar experience? Worrying piece of post to get, out of the blue. Thought I had been fired for a while...