P45, P60 and Starter Checklist: A Guide for Employers

As an employer you give a P45 to anyone who leaves, a P60 by 31 May to everyone still on your payroll on 5 April, and you ask a new starter who has no P45 to complete HMRC's starter checklist. Each form does a different job: the P45 and starter checklist make sure a person is taxed correctly when they change jobs, and the P60 is their record of the year. This guide sets out what you must do with each, and when.

Key takeaways

• P45: you must give one to every employee who leaves.
• P60: due by 31 May for everyone on the payroll on 5 April, on paper or electronically.
• Starter checklist: for new employees without a recent P45. It replaced the P46.
• Starter and leaver details go to HMRC on your Full Payment Submission, not as separate forms.
• Keep payroll records for 3 years from the end of the tax year they relate to.

What are these forms?

The P45, the P60 and the starter checklist are standard PAYE documents that pass pay and tax information between an employer, an employee and the next employer. PAYE works on running totals through the tax year, from 6 April to 5 April. When someone moves job, their new employer needs to know what they have already earned and paid, or they will be taxed as if starting from nothing, or as if they had no allowances at all. HMRC's overview for employees is on GOV.UK under P45, P60 and P11D forms.

The three documents compared

P45: when someone leaves

You must give a P45 to an employee when they stop working for you. It shows their pay and the tax deducted so far in the tax year. HMRC hears about the leaver through your payroll. You put the leaving date on the employee's payroll record when you make their last payment, and it is reported on that Full Payment Submission (FPS). GOV.UK covers the detail under what to do when an employee leaves.

Produce the P45 promptly. A leaver who starts a new job without one is likely to be put on a temporary tax code, and the first person they will ring about it is you.

Starter checklist: when someone joins without a P45

When a new employee hands you a P45 from the current tax year, you use its tax code and figures. If they do not have one, ask them to complete the starter checklist. GOV.UK also says to use the checklist if their P45 shows they left their last job before the start of the previous tax year. For someone starting in 2026/27, that means a leaving date before 6 April 2025.

The employee picks one of three statements:

• Statement A: this is their first job since 6 April and they have not received taxable Jobseeker's Allowance, Employment and Support Allowance, Incapacity Benefit, or a State or workplace pension.
• Statement B: this is now their only job, but since 6 April they have had another job or received one of those taxable benefits. They do not receive a State or workplace pension.
• Statement C: they have another job, or receive a State or workplace pension.

The statement decides the starting tax code. Your payroll software applies it when you enter the declaration, or you can use HMRC's tool to work out your new employee's tax code. HMRC will send a different code later if one is needed. The checklist also asks about student and postgraduate loans, which affects deductions from the first payslip. The full list of what to collect is on GOV.UK under get employee information.

P60: the end of year summary

A P60 summarises an employee's total pay and deductions for the tax year. You must give one to every employee who is on your payroll on 5 April, and you must do it by 31 May. It can be on paper or electronic. Employees use it to check their tax, complete a tax return, claim back overpaid tax, or as proof of income for a mortgage or tenancy, so they tend to notice when it is missing.

If you provide benefits such as a company car or private medical cover, the P11D is a separate job with a 6 July deadline. See P11D benefits in kind explained.

Step by step: a starter and leaver checklist

When someone joins:

1. Ask for their P45 as soon as they accept the job.
2. If there is no P45, or it is too old, give them the starter checklist to complete before the first payday.
3. Collect their date of birth, gender, full address, start date and National Insurance number.
4. Enter the tax code or starter declaration and any student loan plan.
5. Report them to HMRC on an FPS on or before their first payday. Our guide to payslips and RTI reporting explains the submission.
6. File the P45 details or checklist with your payroll records.

When someone leaves:

1. Enter the leaving date on their payroll record with their final payment.
2. Include any outstanding holiday pay and other amounts due in that final pay.
3. Send the FPS as normal.
4. Produce the P45 and give it to the employee.
5. Keep a copy with your records.

Worked example (illustrative)

"Marlow Street Bakery Ltd", an illustrative example, takes on a counter assistant on 12 October 2026. She worked in a café until August but never received a P45. The owner gives her the starter checklist. Because she has had another job since 6 April 2026 and this is now her only one, she ticks statement B. The owner enters that in the payroll software, which sets her starting tax code, and she is reported on the FPS for her first payday on 30 October.

In the same month a baker leaves, with a last working day of 23 October. His leaving date goes on the 30 October payroll run, the software produces his P45, and the owner emails it to him the same day so that his new employer can use it.

On 5 April 2027 the counter assistant is still employed, so she must receive a P60 by 31 May 2027. The baker does not get a P60 from the bakery, because he was not on its payroll on 5 April. His P45 is his record.

The company and people are invented for illustration and are not a real client.

Common mistakes

• Waiting for a P45 that never arrives. Use the starter checklist and pay the employee on time.
• Choosing the statement for the employee. It is their declaration. If you cannot get one, HMRC's tool tells you what to do.
• Using an old P45. Check the leaving date before relying on it.
• Reporting the leaving date late, which can leave an open employment on the person's HMRC record.
• Issuing a P60 to someone who left during the year. They already have a P45.
• Missing the 31 May deadline because the final submission of the year was sent late.
• Throwing records away too early. GOV.UK warns that HMRC can estimate what you owe and charge a penalty of up to £3,000 if you do not keep full records.

How we can help

We run payroll for small employers, including setting up new starters, processing leavers and P45s, issuing P60s and filing every submission with HMRC. Payroll starts from £25 per month per employee on a fixed fee. If you are taking on staff for the first time, read our first employee payroll setup guide. See our payroll service, view our pricing, or contact us before your next new starter's first payday.