Tax when you change jobs
If you’ve started a new job, you might be too busy with meeting new people, learning new things and even finding the best lunch spot, to think about tax.
But it’s important to give it some thought as you may need to tell us that your job has changed. You can find out more about how to do this on GOV.UK.
Your new employer will usually handle any changes to your wages, and you’ll be taxed through our ‘Pay As You Earn’ (or PAYE) system. Learn more about how it works on our PAYE page.
Before starting your new job, there are a few simple things you can do to make sure everything runs smoothly.
Sharing your P45
When you leave a job to start a new one, your old employer gives you a document that shows how much you’ve earned and how much tax you’ve paid since 6 April that year. This is called your P45.
Key thing to remember:
Your P45 has four parts, each clearly titled. One for you and three to give to your new employer. Passing on this information makes sure they take off the right amount of tax each time you’re paid.
If you have your P45 but aren’t starting your new job just yet, keep it somewhere safe.
If you didn’t get it from your old job, you can contact them and ask for it.
It’s fairly common that your old job won’t give it to you until you’ve started your new one. Just give it to your new employer as soon as you have it.
No P45? Use a starter checklist instead
If you can’t get your P45, your old job hasn’t given it to you yet, or if you’re starting your first ever job, don’t worry, there’s another way to give this important tax information to your new employer.
Helpful tip:
You can fill in a ‘Starter Checklist’ instead. It takes a few minutes and asks some basic questions about your situation, like whether this is your only job, and whether you’ve earned any other money since 6 April that year.
You can fill out a Starter Checklist on GOV.UK, or your employer can give you a paper version. Either way, it’ll help make sure you’re on the right ‘tax code’ from day one.
Right tax code, right tax
Your tax code makes sure you pay the right amount of tax. It’s a mix of numbers and letters that tells your new employer how much of your wages to send to us as tax.
When your job, or how much you earn changes, we update your tax code and send it to your new employer.
Sometimes, we don’t get your information in time to set up the right tax code. If this happens, you might be put on an emergency tax code for a short while. ‘Emergency’ sounds scary, but it’s the normal process for when we don’t have enough information – and once your details are sorted and you’re on the right tax code, we can check that you haven’t paid too much tax.
Helpful tip:
Share your P45 with your new job or fill out the new starter checklist on GOV.UK as soon as you can. This makes it more likely we can put you on the right tax code from the start
Learn more about how it all works on our Understanding your tax code page.
You can check your tax details online
Your new job usually appears on your online account about six weeks after your first payday. You can also use the HMRC app to check that everything looks right.
Helpful tip:
If you find that your old job is still showing, or we have your salary down wrong, you can update it yourself online. It only takes a few minutes
You’re in control of keeping things accurate
The PAYE system is designed to work without you having to do anything – your employers report how much you earn, then we work out your tax – but a quick check that everything looks right every so often keeps you in control.
If you’ve recently changed jobs, make sure you take five minutes to check that everything’s in order, before getting back to doing what you do best.