However there may be occasions when the new employee won't be able to give a P45. In such cases, still you must use the correct tax code and report their details to HMRC via a Full Payment Submission (FPS) the first time you pay them.
If your new employee doesn't have a P45, you must ask them to submit a declaration, in which they select one of the following situations that apply to them. According to the situation they choose, the tax code given against the respective criteria should be applied :
- This is their first job since last 6 April and they have not been receiving taxable Jobseeker's Allowance, Employment and Support Allowance, taxable Incapacity Benefit, state pension or occupational pension (1000L cumulative)
- This is their only job, but since last 6 April they have had another job, or have received taxable Jobseeker's Allowance, Employment and Support Allowance or taxable Incapacity Benefit. They do not receive state or occupational pension (1000L on a week 1/month 1 basis)
- They have another job or receive a state or occupational pension (BR cumulative)