What is a P45 and how does it affect my tax?

Your P45 summarises any pay received from your previous employer during the present tax year (April - March).

It let's your new employer know how much tax you have paid during the current year and what tax code they should apply.

If you do not have a P45 - DO'NT PANIC. Anne Jagger Recruitment's Payroll Team will apply a temporary Tax Code that will enable us to deduct tax at a standard rate and request your current tax code from the taxman at The Revenue.

We should be notified of your Tax Code with a couple of weeks and, ff your temporary tax code has deducted more tax than you should have paid, you will be refunded through your payroll when the new code is issued. 

If you have finished your assignment or are starting a new job with another employer, let the Payroll Team at Anne Jagger know and we will ensure that your P45 is forwarded to you so that your tax affairs are up to date.

I don't understand my Tax Code

As a Temporary Worker there are a number of things that can seem confusing when it comes to paying tax especially if;

  • You have not worked for a while due to travel, illness or some other reason - perhaps you are returning to work after some years of bringing up a family.
  • You work irregular hours.
  • You earn different hourly rates depending upon the role you perform
  • You have another job in addition to your temp assignment

We will calculate your tax based upon the information you provide on your New Employee Starter (which you can download here) form and ensure that your tax position is up to date by issuing a temporary tax code and notifying HMRC that you are now working for Anne Jagger Recruitment

Why have I got a temporary tax code?

Unless you have given us a valid P45 from your previous employer, we will use the information provided on your New Employee Starter form to apply a temporary code. This will not usually deduct any more tax than you would normally pay anyway but it will enable us to liaise with HMRC who will, very quickly, issue your correct tax code and authorise any repayment of overpaid tax.

How your tax is calculated and why it can be different from one week to the next