Understanding an HMRC P46 Form: A Beginner Guide to New Employee

Starting a job without a P45 form in the UK is not an issue. The documents should contain correct employee information. If the employee doesn’t have a P45 form, the P46 form HMRC is the document that can help with the tax code and manage payroll.

This form is an important document used to collect tax details and deductions when starting a job in a new office. It ensures that the worker has put the right tax information and paid the correct amount. Nowadays, this process is carried out online through a new system, Starter Checklist.

The form and submission method are the same,  but it is managed online on the HMRC official website. Even though the P46 form has been replaced by digital means, Adam Accountancy deals with payroll, registration forms and online tax services.

What is HMRC P46 Form?

This is a tax document of HMRC, used in the UK for employees who want to start a new job and don’t have a P45 form. HMRC form ensures that the correct amount of tax is paid at the start of employment. 

It is a component of the UK tax system, allowing both employee and employer to provide the information to HMRC to issue the correct tax code. The form makes sure the income tax deduction is accurate, even if the candidate didn’t have previous employment records of the already paid taxes.

The Purpose of P46 is to help HMRC understand the employee’s previous work details and tax situation when they join a new workplace. P46 ensures the correct tax code is applied to avoid higher deductions from the payroll.    

Without P45, the accurate tax code is hard to find, so P46 assists with that as well and provides HMRC new employee form P46 with the necessary personal information, insurance number and employment details when changing jobs or returning to work. 

Importance of P46 Form:

Before the Starter Checklist was introduced, P46 form HMRC, also known as a new starter form, plays a vital role in managing tax and payments in the UK’s tax system. Employers used this form to gather important information related to tax in case P45 is not available. 

P46 is outdated but many candidates depend on this form to get tax code and provide their employment details to the HMRC and help clarify how tax records are managed. P46 form is essential for new employees:

• Correct Tax Code: The correct code and information is essential for any form submission, P46 helps the individual with the correct tax code to prevent overpayment of the tax.   
• Avoid Emergency Tax: The P46 helps avoid the payment of higher emergency taxes by providing basic employment and income tax details of an individual.   
• Provide HMRC essential information: The HMRC requires all the previous details of the employee to confirm the tracking of earnings, tax payment and deduction, P46 provides HMRC all the essential details.  
• HMRC Requirements: The P46 form provides an organized system for employees to report information about new members. The form helps employers meet the HMRC reporting requirements. 

Information required for P46:

All HMRC tax forms need all the necessary information related to financial details, such as benefits, payments or loans. The information required to fill the P46 form is as follows:

1. Employee Full Name
2. Date of birth:
3. Address:
4. National Insurance Number
5. Previous Employment Details       

The replacement for the P46 form is the digital starter checklist, but the information required to fill out the online form hasn’t been changed, so the information is the same for the online P46 starter checklist. 

Required Information:	Details:
Personal Information	Full name, Date of birth, address, NI number
Previous Employment Details	Start date, Salary, PAYE reference
Employment Decalaration	Three statements of declaration
Tax Code Information	Previous tax record

How to fill out the Form of P46?

The HMRC P46 form submission process is not difficult, but it is essential if the P45 form is not available. It is crucial to fill out the form correctly to ensure accurate tax payments and prevent an emergency tax code. The following steps are required for filling the form:

• The employee should obtain the P46 form provided by the HMRC or Payroll departments. It can also be downloaded from the official HMRC website.
• The form requires basic personal details of the candidates, like full name, address, postal code and NI number. It is required to match the tax records.
• The previous employment details are also required if the individual is applying for a new job, such as start day, salary and PAYE reference number.
• The employee declaration section is crucial and includes three statements that need to be filled out to help HMRC new employee form P46 determine the accurate tax code.   
• After completing all sections, sign the declaration and write the date.
• Then the employer will finish their section and is also responsible for submitting the P46 form to HMRC.
• After the submission, verifying the first payslip is also necessary to check that the tax code matches the HMRC.

Common Mistakes to Avoid:

The employers and employees should be observant of these mistakes when filling out or handling the form. Inaccurate information can cause the process to be delayed or errors in tax payments. It is best to review the whole form before submitting it.

1. Incomplete details: Leaving the sections blank or providing incomplete details can cause issues in the process.
2. Providing incorrect personal details: Spelling errors, inaccurate dates or numbers before submitting the form can cause mismatched records.  
3. Not signing or mentioning the date on the form: The unsigned form is invalid and will not be submitted by HMRC.
4. Choosing the wrong statement: Selecting the wrong choice of word or option for the employment declaration will not provide the correct tax code.
5. Not keeping a copy: It is essential to keep a copy of the completed form for reference or any issues in the future.
6. Not informing HMRC about multiple jobs: If the employee has multiple jobs, inform HMRC to prevent issues and under- or overpayment.
7. Delaying the form submission: Submitting the form late can delay the payment process and sometimes give tax code errors.     

P46 VS P45: Comparison:

A P45 form is a type of form issued by the employer when the employee is leaving the job. Both P46 and P45 have the same purpose, but there is a distinct difference between the two forms. 

When leaving the old job or starting a new one in the UK, the HMRC needs specific information on the form, so the P45 and P46 are submitted to the HMRC or Payroll department.

Features	P45	P46
Purpose	To record tax and payment details.	If the P45 is not available, this form is used to ensure tax code details.
When they’re used	This form is issued when an employee is leaving the job.	This form is used when the individual starts a new job.
Information	Name, NI number, tax code, payment and paid tax details.	Name, date of birth, address, NI number, employment date and declaration statements.
Submission Process	This form is submitted to HMRC by the employer.	This form is submitted to the employer by the new employee and then sent to the HMRC.
Modern Replacement	It is not replaced and is available digitally	P46 is replaced by a digital form, Starter Checklist.

Conclusion: 

The P46 form is outdated, but it is important for unemployed people or individuals who started a new job and do not have a P45 form. The purpose of the HMRC P46 form is to provide accurate tax information to the HMRC to ensure the correct payment of the tax.

The new version of the P46 form is the Starter Checklist. This online form has the same concept as P46 and assists in identifying the accurate tax code and helps avoid overpaying for the emergency tax.   

FAQs:

Q.1 What is a P46 Form HMRC?

Ans: The P46 form is used by new employees who have just started a job. The HMRC requires specific personal details to assign an accurate tax code.

Q.2 What information is required for the P46 form?

Ans: The information includes the full name of the employee, date of birth, address, postal code, NI number, employment details and declaration statement of employment 

Q.3 How do the employees get the P46 form HMRC?   

Ans: The employees can get the P46 form from a tax office or they can contact the HMRC

Q.4 Is a P46 also essential for a self-employed individual?

Ans: No, the P46 form or Starter Checklist is not essential for a self-employed individual. It applies only to employees under the PAYE system. 

Q.5 What is the difference between P45 and P46?

Ans: The P45 form is used when an employee is leaving the job and is submitted by the employer and a P46 is submitted by the new employee to the new workplace to confirm the tax details.  

Q.6 Do employees with multiple jobs need to submit a P46 form?

Ans: Yes, the employees with multiple jobs need to inform the HMRC about their work to get an accurate tax code for tax deductions.

Q.7 When is the P46 form used?

Ans: When an unemployed or a businessman starts a job or an individual wants to change jobs, then P46 is used.  

Q.8 Is P45 better than P46?

Ans: Both have different purposes. P45 is more accurate and provides direct information from the employer to the HMRC, while P46 is a backup form and is used when P45 is not available. 

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