P45
Encyclopedia
A P45 in the United Kingdom
, and the Republic of Ireland
is the reference code of a form
titled Details of employee leaving work. The term is used in British slang
as a metonym for termination of employment
. The equivalent in the United States
is a pink slip.
, who then record the pay and tax details on to the individual's taxpayer record. Part 1A is to be retained by the employee, Part 2 retained by the new employer, and Part 3 taken by the new employer and sent to their tax office. The P45 contains details of earnings and tax
paid during the tax year (tax paid in previous years is detailed on the P60
for that year).
The "P" code refers to documents in the PAYE
series, in the same way that self-assessment documents are prefixed "SA" (e.g. SA100 - Individual tax return) and Tax Credits paperwork is prefixed "TC" (e.g. TC600 - Tax credits application).
In the Republic of Ireland, P45 is also used as a reference to a form used by the Office of the Revenue Commissioners
with the same function. The administrative procedures in this area are similar; however, the form itself is different in design from the UK version.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, and the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
is the reference code of a form
Form (document)
A form is a document with spaces in which to write or select, for a series of documents with similar contents. The documents usually have the printed parts in common, possibly except for a serial number...
titled Details of employee leaving work. The term is used in British slang
British slang
British slang is English language slang used in the UK. Slang is informal language sometimes peculiar to a particular social class or group and its use in Britain dates back to before the 16th century...
as a metonym for termination of employment
Termination of employment
-Involuntary termination:Involuntary termination is the employee's departure at the hands of the employer. There are two basic types of involuntary termination, known often as being "fired" and "laid off." To be fired, as opposed to being laid off, is generally thought of to be the employee's...
. The equivalent in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
is a pink slip.
Summary
A P45 is issued by the employer when an employee leaves. It is a multipart form. In the UK, the front section, Part 1, is given by the old employer to Her Majesty's Revenue and CustomsHer Majesty's Revenue and Customs
Her Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes and the payment of some forms of state support....
, who then record the pay and tax details on to the individual's taxpayer record. Part 1A is to be retained by the employee, Part 2 retained by the new employer, and Part 3 taken by the new employer and sent to their tax office. The P45 contains details of earnings and tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
paid during the tax year (tax paid in previous years is detailed on the P60
P60
In the UK and the Republic of Ireland, a P60 is a statement issued to taxpayers at the end of a tax year. It is important a taxpayer does not destroy the P60 forms issued to them, as they form a vital part of the proof that tax has been paid.- Ireland :In Ireland, it details a taxpayer's taxable...
for that year).
The "P" code refers to documents in the PAYE
PAYE
Pay as you earn or PAYE refers to a system of withholding of income tax from payments to employees. Amounts withheld are treated as advance payments of income tax due. They are refundable to the extent they exceed tax as determined on tax returns. PAYE may also refer to withholding of the...
series, in the same way that self-assessment documents are prefixed "SA" (e.g. SA100 - Individual tax return) and Tax Credits paperwork is prefixed "TC" (e.g. TC600 - Tax credits application).
In the Republic of Ireland, P45 is also used as a reference to a form used by the Office of the Revenue Commissioners
Office of the Revenue Commissioners
The Office of the Revenue Commissioners , - now called simply Revenue - is the Irish Government agency responsible for customs, excise, taxation and related matters...
with the same function. The administrative procedures in this area are similar; however, the form itself is different in design from the UK version.
External links
- PAYE forms: P45, P46, P60, P11D United Kingdom information
- E13 Day to Day Payroll Additional United Kingdom information Republic of Ireland information DTDDocument Type DefinitionDocument Type Definition is a set of markup declarations that define a document type for SGML-family markup languages...
for online submission of P45 in XMLXMLExtensible Markup Language is a set of rules for encoding documents in machine-readable form. It is defined in the XML 1.0 Specification produced by the W3C, and several other related specifications, all gratis open standards....
format