P45 and P60 Explained: What They Mean When You Change Job UK 2026

Last updated: January 2026 | Category: Employment Law | Reading time: 6 minutes

If you change jobs in the UK, your tax forms — the P45 and P60 — are essential documents that tell HM Revenue & Customs (HMRC) and your new employer how much tax you've already paid. Understanding these forms helps you avoid emergency tax and ensures you're not overpaying. This guide explains what each form does, what the tax codes mean, and what to do if you lose your P45 or your new employer doesn't have it.

1. What is a P45 and when should you receive it?

A P45 is a tax form your employer gives you when you stop working for them. It shows your total pay and the amount of tax deducted up to your leaving date. Under the Income Tax (Pay As You Earn) Regulations 2003 (SI 2003/2682), Regulation 36, your employer must provide a P45 on your last day or within a reasonable time after you leave. The form has four parts:

Part 1 – sent to HMRC by your old employer.
Part 1A – for your new employer (so they can set up your correct tax code).
Part 2 – for your own records.
Part 3 – also for your new employer (used to update HMRC).

If your employer refuses to give you a P45, contact ACAS or HMRC. In Scotland, the same rules apply under reserved UK legislation, though income tax rates differ slightly. Northern Ireland follows the same PAYE regulations.

2. What is a P60 and why does it matter?

A P60 is an annual tax summary your employer must give you by 31 May after the end of each tax year (which runs from 6 April to 5 April). It shows your total earnings, total tax deducted, and your National Insurance contributions for the year. You need your P60 to complete a self-assessment tax return, apply for tax credits, or check you've paid the right amount of tax. Employers who fail to issue a P60 on time can face penalties under the Income Tax (PAYE) Regulations 2003. If you lose your P60, you can request a duplicate from your employer or view your tax record online via your personal tax account at GOV.UK.

3. Understanding your tax code on a P45 or P60

Your tax code tells your employer how much tax-free pay you're entitled to in a tax year. The most common code is 1257L, which gives you the standard personal allowance of £12,570. Here's what the letters mean:

L – standard personal allowance (most common).
M – marriage allowance transfer (10% of partner's allowance).
N – marriage allowance received (reduced allowance).
T – your allowance includes other adjustments (e.g. benefits).
BR – all income taxed at basic rate (20%) – used for second jobs.
D0 – all income taxed at higher rate (40%).
D1 – all income taxed at additional rate (45%).

If you see W1 or M1 after your code (e.g. 1257L W1), you're on an emergency tax basis. This means your tax is calculated only on what you've earned in the current week or month, ignoring previous earnings. This often happens when your new employer doesn't have your P45.

4. What to do if your new employer does not have your P45

If you start a new job without a P45 (lost, delayed, or never received), your employer cannot set up your correct tax code. Here's what to do:

Ask your previous employer for a duplicate P45 – they must provide one under PAYE regulations.
Complete a Starter Checklist (formerly HMRC form P46). Your employer will use this to put you on an emergency tax code (usually 1257L W1/M1) until HMRC updates your record.
Use your personal tax account at GOV.UK to generate a 'starting income' letter (also called a 'tax code letter') that your employer can use.
Contact HMRC directly (0300 200 3300) – they can issue a 'tax code notice' to your employer within a few days.

If you're overpaying tax due to emergency coding, HMRC will usually refund the overpayment automatically at the end of the tax year. You can also claim a refund earlier using your personal tax account. In Scotland, the same process applies, but emergency codes may reflect Scottish rates (e.g. S1257L).

Frequently Asked Questions

What is the difference between a P45 and a P60?

A P45 is given when you leave a job and shows earnings and tax paid up to the leaving date. A P60 is an annual summary given at the end of each tax year (5 April) showing total pay and deductions for the whole year.

What should I do if my new employer doesn't have my P45?

Complete a Starter Checklist (formerly HMRC form P46). Your employer will use this to put you on an emergency tax code (usually 1257L W1/M1) until HMRC updates your record. You can also use your personal tax account to get a 'starting income' letter from HMRC.

What does my tax code mean on a P45 or P60?

The most common code is 1257L, which gives you the standard personal allowance (£12,570). Letters like 'L', 'M', 'N', 'T', 'BR', 'D0', or 'D1' indicate different allowances or tax rates. 'W1' or 'M1' mean emergency tax is being applied on a week1/month1 basis.

Can my previous employer refuse to give me a P45?

No. Under the Income Tax (Pay As You Earn) Regulations 2003 (SI 2003/2682), Regulation 36, your employer must provide a P45 when you leave, usually on your last day or shortly after. If they refuse, contact HMRC or ACAS for help.

Do I need a P45 if I'm starting a second job?

Not necessarily. If you keep your main job, your second employer will use a Starter Checklist. Your tax code for the second job may be BR (basic rate) or D0 (higher rate) so that your personal allowance is only used once.

References and further reading

Legislation references: Income Tax (PAYE) Regulations 2003 (SI 2003/2682), Part 3 (issue of P45), Part 4 (annual P60). The Employment Rights Act 1996 (Section 1) also requires employers to provide written particulars, but the specific tax form obligations fall under HMRC regulations.

Ask Lexi about your specific situation — whether you've lost your P45, are facing emergency tax, or need help understanding your tax code.

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