What is a P46 form?

Employers use the P46 form to collect crucial details about their employees. Such as their tax code, in cases where the employee does not have a P45 form. To use this form, employers typically require new employees who have not worked in the UK before or those who have not received a P45 form from their previous employer.

Why is a P 46 Form Important?

The P46 form is a crucial document for employers as it helps them to ensure that they deduct the correct amount of tax from their employee’s pay. By submitting a P46 form, the employer is notifying HM Revenue & Customs (HMRC) of the employee’s details, including their tax code. This information helps HMRC to calculate the correct amount of tax and National Insurance contributions (NICs) to deduct from the employee’s pay.

Completing a P 46 Form

To complete a P46 form, the employee will need to provide their personal details. Including their full name, address, and date of birth. The form will also require the employee to provide their National Insurance number if known. Additionally, the employee will need to indicate whether they have had any previous employment in the UK and if they have any other jobs or pensions.

Before the employee’s first payday, the employer must fill out and submit the P46 form to HMRC. This is necessary to ensure that the correct tax and NICs are deducted from the employee’s pay.

When is a P 46 Form Required?

If an employee does not possess a P45 form, they will need to fill out a P46 form. The previous employer of an employee issues a P45 form, which includes vital information like the employee’s tax code and earnings from their previous job.

If an employee does not have a P45 form. The employer will need to use a P46 form to gather the necessary information about the employee’s tax code and previous employment. It is important to note that a P46 form is only required when the employee is starting a new job and has not been previously employed in the UK. Also, in case if they have not been issued a P45 form from their previous employer.

What information is required on a P46 form?

A P46 form requires the employee to provide the following information:

  • Personal details, including name, address, and date of birth.
  • Whether they have another job or receive a pension.
  • Whether they have any student loans.
  • Whether they have been sent an SLC1 form.
  • Whether they have a student loan from Scotland or Northern Ireland.
  • Whether they have any taxable expenses or benefits.
  • Whether they have received any taxable pay in the current tax year.

P46 vs. P45

A P45 form is issued by a previous employer and contains information about an employee’s earnings and tax contributions up to the point of leaving that job. In contrast, a P46 form is used for new employees who do not have a P45. While both forms provide necessary information for tax purposes, they serve different purposes.

What to do if you don’t have a P46 form

If a new employee does not have a P46 form. The employer must gather the necessary information from the employee and submit it to HMRC. The employer can also use a “New Employee Starter Checklist” to gather the information.

P46s for new hires and rehires

If an employee leaves a job and is rehired by the same employer. The employer will need to complete a new P46 form for that employee. However, if the employee is rehired within four weeks of leaving, the employer can use the previous P46 form.

P46s for company directors

Company directors must also complete a P46 form when starting a new job or when they start receiving payments from a company as a director. The P46 form allows HMRC to determine whether the director should be taxed under PAYE (Pay As You Earn) or under self-assessment.

P46s for international workers

If an employee is an international worker and does not have a UK National Insurance number. They will need to complete a P46 form. This will allow the employer to get a temporary reference number for the employee until they receive a National Insurance number.

P46s and tax codes

HMRC will provide a tax code to the employee after they have received the P46 form. The tax code specifies how much tax is taken from an employee’s pay. If the employee is assigned an emergency tax code, they will be taxed at a higher rate until a proper tax code is granted.

Feel free to reach out to us if you have further questions.

Share This :

Leave a Comment

Your email address will not be published. Required fields are marked *

Recent Post

Dont Hesitate To Contact Us

We would love to hear from you.