A P46 form is also referred to as an HMRC new starter checklist. It’s used when the employee doesn’t have a P45 from their previous employee.

To create a new employee with a P46

1. Select Employees from the menu bar.
2. Select Create Employee.
3. Under Previous Tax Details, change the Starting Basis to Employee declaration: P46.

4. In the Circumstances list, select one of the following options:

   A	Select this declaration if this is the employee’s first job since the last 6 April. They also didn't get taxable Jobseeker’s Allowance or Employment and Support Allowance. Also no taxable Incapacity Benefit, or state or occupational pension. Put the employee on a 1257L tax code.
   B	Select this declaration if this is the employee’s only job but since last 6 April they’ve had another job. Or has received taxable Jobseeker’s Allowance. Or Employment and Support Allowance, or taxable Incapacity Benefit. The employee doesn’t receive a state or occupational pension. Use the tax code 1257L on a 'Week 1/Month 1' basis.
   C	Select this declaration if the employee currently has another job. Also, select if they receive a state or occupational pension. Use the tax code BR.

5. Select an NI Category.
6. Select the Student loan or Postgraduate loan if relevant.
   • This won’t add the deduction to the employee's payslip. Complete this in the PAY window of the pay run
7. Select Save.
   
   NOTE:

   Payroll automatically assigns the employee the standard tax code.