In this article we are going to explain what the P46 form is, what it was effectively replaced by in 2013 and how due to some recent significant changes it will finally meet its complete demise.
The P46 is a tax form which is requested by an employer from an employee for one of these three reasons. Firstly, if the employee can’t provide the new employer with their last P45 form. Secondly, if the employee is starting their first ever job. And thirdly, if the employee is starting a second job without leaving current employment.
In April 2013, the P46 was “effectively” replaced by the New Starter Checklist which asks new employees a series of relevant questions before their first pay day, which can then be relayed to HMRC. The checklist also helps the employer allocate a tax code to the employee and calculate the amount of tax that is due on the employees first pay day. From there, HMRC processes the New Starter Checklist information and where appropriate revises the tax code.
You can find out more about the starter checklist as well as download the full form by following this link.
However, despite the P46 not being the recommended way of doing things post April 2013, it was still used by a number of businesses across the UK, because it still effectively worked. However, due to the advent of two new student loan plans from the start of the tax year 2016-2017 the old P46 ceases to ask all of the questions that need to be asked. This marks the final demise of the P46 form.
We hope this article has been useful in explaining what the P46 form is, what its purpose is and why it is no longer relevant or effective.