The P46 form also known as the ‘HMRC Starter Checklist’ is an important document used in the UK by a employees when they start a new job, this form has all the important information about new employees’ tax status which will help employer to determine the appropriate tax code and ensure accurate tax deductions for the employee.
Below we have listed answers to the common questions which will help you to understand better about P46 form its purpose and the importance of P46 form.
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What is a P46 form?
It is mandatory for every employer in the UK to maintain the correct tax code for every employee. When a new employee joins an employer, the employer asks the employee to complete the P46 form also known as “Starter Checklist” or “HMRC Starter Checklist“ so that the employer can have the complete details about the employee’s tax status in the UK. The P46 form will help the employer to ensure proper tax deductions from employee salary.
When is the P46 form used?
When a new employee joins an employer he may doesn’t have the P45 from an existing employer in that case employee can fill out the P46 form which will have all the details of the employee, new employer can use that form and apply correct tax code for the new employee. This applies to an employee who joins his first job and doesn’t have P45 as he has not worked for any employer earlier.
What information does the P46 form require?
The P46 form details are required for correct tax purposes for the new employer. This will have all the information about the new employee like name, address, date of birth, NI number, new job start date, or if you have any other jobs or receive any other benefits in the UK. You may have student loan or any other deductions which you think should be considered as deductions for tax purposes.
How does an employee obtain a P46 form?
When a new employee joins the employer, the employer provides the electronic format of the P46 form or a physical copy of it based on the preference of the employee.
How should the P46 form be completed?
Once you get the P46 form to fill, the employee should enter his details carefully as it may impact his tax deductions on a monthly based on the information given in the form. However, if you think you need more information about any field which you don’t understand you may consult your HR or Payroll department for support.
Also read: P60 Form
What happens after the P46 form is completed?
Once you submit the P46 form to the employer either in physical format or electronic format. Employer will process your P46 form and assign an appropriate tax code based on the information you have filled. Tax deductions will happen every month based on the tax code assigned to you.
Are there any deadlines for submitting the P46 form?
You should submit P46 as soon as possible after you join the new employer. The new employer will prepare your pay slip based on the P46 form or HMRC starter checklist. As P46 is required for next month’s payroll.
What if an employee has multiple jobs or other sources of income?
The objective of the P46 form is to ensure that you are assigned the correct tax code. Employee should mention if he is doing multiple jobs this will help the employer to assign an appropriate tax code
Also read: P6 Form – Tax Notice from HMRC
Can an employee update their information after submitting the P46 form?
If an employee’s situation changes like starting another job or new income sources added employee should inform employer’s HR department or Payroll department so the employer can make adjustments based on the information given by the employee.
Is the P46 form the same as a P45 form?
No, the P46 form is not the same as the P45 form. The P46 form is filled and submitted by the employee when joins a new company. However, the P45 form is issued by the previous employer when an employee exits the company or resigns from the company.
The P46 form plays a crucial role in ensuring accurate tax deductions and pension enrollments for new employees in the UK. By providing the necessary information on the form, employees help their employers determine the correct tax code and make the necessary arrangements. It is important to complete the P46 form accurately and promptly to avoid any issues with tax and pension contributions.
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