P45
|
|
In the United Kingdom, P45 is the reference code of a form titled Details of employee leaving work. It is issued by the Inland Revenue when they are notified of an employee leaving their employers. It is a multipart triplicate form. The front section, Part 1A is to be retained by the employee, Part 2 retained by the employer, and Part 3 taken by the employer and sent to their tax office. The P45 contains details of earnings and tax paid during the tax year (tax paid in previous years is detailed on the P60 for that year).
The "P" code refers to documents in the PAYE series, in the same way that self-assessment documents are prefixed "SA" (e.g. SA100 - Individual tax return) and Tax Credits paperwork is prefixed "TC" (e.g. TC600 - Tax credits application).
In the Republic of Ireland, P45 is also used as a reference to a form with the same function, as the administrative procedures in this area are similar. However, the form itself is different in design from the UK version.
Based on the nature of the form, "P45" is often used humorously as a reference to sacking, or the possibility thereof.
- - Damn, I just brought our entire network down. P45, anyone?
- - John has failed to reach his sales target for four months in a row. Will it be P45 time?