Pay As You Earn (PAYE) form: starter checklist
Are you starting a new job and do not have a form P45? Here we provide three annotated examples to illustrate how you should complete a starter checklist.
When you start a job, your employer has to provide some information to HM Revenue and Customs (HMRC) so that they can decide what tax free allowances you are entitled to.
If you are starting a new job and do not have a form P45 from a previous employer or the Department for Work and Pensions, your employer should ask you to complete a starter checklist. This might be the case if this is your very first job, or if you have not worked previously during the tax year, or you have misplaced your form P45.
The checklist asks you for relevant information; it will help your employer to allocate a tax code and work out the tax due on your first payday. If you do not provide this information, you could end up paying the wrong amount of tax.
⚠️ You should be aware that one major cause of tax problems for those in employment, is the incorrect completion of the starter checklist – in particular picking the wrong employee statement (A, B or C). We explain more in our news piece Why completing a starter checklist CORRECTLY when starting a new job really does matter!.
If your employer does not ask you to complete a starter checklist, you can get the form and complete it yourself.
Give the completed checklist to your employer. Do not send the checklist to HMRC. We also recommend keeping a copy of the checklist for your records.
⚠️ IMPORTANT NOTE: We have heard that some employers are advising that they cannot employ individuals or pay them until they have a National Insurance number. This is not correct. As we explain in our guidance, provided you can prove that you have the right to work in the UK, you can start work. There is no deadline by which you must have a National Insurance number after starting work.
You should tell your employer that you are unable to apply for one because of the current circumstances. You should apply for a National insurance number as soon as you are able to do so.
You should also complete the Starter Checklist so that your employer can add you onto the payroll. You should leave the National Insurance number box blank.
The employer should still deduct tax and National Insurance from you (if you are liable) and they can make the necessary payroll submissions without providing a National Insurance number to HMRC. If necessary, you can refer your employer to GOV.UK guidance on the matter, which clearly states that the National Insurance number is only required if known.
Once you have a National Insurance number, you should provide it to your employer as soon as possible. Your employer will send this to HMRC via their payroll submissions.
HMRC should then be able to match up the tax and National Insurance contributions that you have already paid via the payroll with your new National Insurance number.
There are two versions of the form available on GOV.UK.
One allows you to complete the starter checklist onscreen and then print it so you give it to your employer.
The other is a blank copy of the starter checklist that you can download and print so you can complete it by hand.
You will not be able to save a completed online form, so please do keep a copy for your records.
Jenny J, who was born 21 June 1994 starts work on 5 July 2021. This is her first ever job and as she has been studying full-time and then travelling abroad until then, she has not been claiming any benefits or pensions. Jenny has a Student Loan, which she has not started to pay off yet. She completed her higher education course before 6 April 2021.
Caroline C, who was born 31 August 1968 has worked part-time for several years for a large supermarket. On 30 June 2021 she starts a second part-time job for a local coffee shop. She does not have a Student Loan.
Mike M, who was born 10 October 1981 was made redundant in 2019. He has been claiming Jobseeker’s Allowance since 2019 and looking for a new job. On 1 September 2021, having found a job, he starts work for a new employer and no longer claims Jobseeker’s Allowance. He has a Student Loan. When he was made redundant, he set up a monthly payment plan with the Students Loan Company to repay the outstanding loan, and he wants this arrangement to continue.