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HMRC internal manual

PAYE Manual

Employment maintenance: cease employment: employer responsibilities

When an employee leaves employment the employer must

  • Provide the employee with aP45 parts 1A, 2 and 3.
  • Send leaving information to HMRC on their employees Full Payment Submission (FPS)
  • If an employee dies, the employer enters the date of death in the date of leaving field on the FPS

If the employee was claiming Jobseeker’s Allowance The Department for Work and Pensions Office

  • Sends in P5 part 1 to HMRC
  • Hands the P45 part 1A, 2 and 3 to the employee. The employee keeps Part 1A and gives Parts 2 and 3 to any new employer

However, there are some exceptions these are when an

  • Employee retires on pension. In these cases where the pension
  • Is paid by the employer, the employee is not regarded as having left and no form P45 or leaving information should be submitted on the FPS