You have a new employee with P45 from their previous employer and you’re not sure what information it contains or what to do with it.
The P45 gives details of gross pay and tax deducted within the working tax year it was issued. It also shows the tax code being used at the time the employee left employment and this should be applied to the new payroll. These figures should be used within your payroll, being shown as ‘year to date’ figures within your payroll software system
More information on how to process a new employee can be found on the Gov.uk website here:
www.gov.uk/new-employee/overview
If PayrollAbility is running your payroll, we should receive a copy of that document at the time that the employee is added to the payroll. A scanned copy of the P45 is acceptable.
