Last updated on:
March 17, 2024

The P46 was a form that employers used to give to new employees who didn't have a P45 form from a previous job. It was a way for employers to gather necessary information to ensure the correct tax amount was deducted from an employee's salary. This information included whether the new employee had any student loans or was receiving certain benefits, which would affect their tax code.

Historically, the distinction between a P45 and P46 was that the P45 was issued to employees when they left a job, showing their tax details for the current tax year. The P46, on the other hand, was for those starting a new job without a P45, helping to ensure they were placed on the correct tax code.

However, in 2013, HMRC discontinued the P46 form, opting instead for a universal approach to ensure all new employees, regardless of their situation, could provide their new employer with the necessary tax information. This led to the introduction of the new starter checklist, a comprehensive form that requests from new hires their National Insurance Number, student loan information, and other relevant details for tax purposes.

If a new employee doesn't provide a P45 or the employer doesn't utilize the new starter checklist, the employee may be placed on an emergency tax code. This could lead to incorrect tax deductions, although any overpayment can be reclaimed from HMRC.

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