Late P45 or starter checklist

You may need to update your payroll records if your employee gives you a P45 or starter checklist after you’ve registered them with HM Revenue and Customs (HMRC).

You only need a starter checklist from your employee to work out their tax code if either:

  • they do not have a P45
  • they left their last job before 6 April 2021

If HMRC has sent you a tax code

Use the tax code that HMRC has sent you if your employee gives you a P45 or starter checklist after you’ve first paid them. Deduct any student loan repayments from the date your employee started with you.

If HMRC has not sent you a code

Late P45

Use your employee’s P45 to work out their tax code and update their details in your payroll software.

If your employee left their last job after 5 April 2021, you should also update both of the following fields in your payroll software:

  • ‘Total pay to date’
  • ‘Total tax to date’

Do this for the first week you included this information. If your software finds errors, update the fields with the correct figures.

Late starter checklist

Use your employee’s starter checklist to update the starter declaration in your payroll records.

Keep using the tax code you used in your first Full Payment Submission (FPS) until HMRC sends you a new one.

When you next pay your employee

Do not enter another start date on the FPS, even if you have not reported a start date before.

  1. Step 1 Check your business is ready to employ staff

  2. Step 2 Recruit someone

    You need to advertise the role and interview candidates. You can use a recruitment agency to do this or do it yourself.

    1. Find out about recruiting someone yourself on Acas
    2. Find out about using a recruitment agency

    As an employer you must make sure you recruit employees fairly.

    1. Avoid discrimination during recruitment
    2. Make your application process accessible for employees with disabilities or health conditions
  3. and Check they have the right to work in the UK

  4. and Find out if they need a DBS check

    You may need to check someone's criminal record, for example, if they'll be working in healthcare or with children.

    1. Find out if you need a DBS check
    2. How to do a DBS check
  5. Step 3 Check if they need to be put into a workplace pension

    Check if you need to put your employee into a workplace pension scheme:

  6. Step 4 Agree a contract and salary

  7. Step 5 Tell HMRC about your new employee