Summary
How to enter P45 information in Sage Payroll.
Description
A P45 is a form given to you by an employee from their previous employer. It includes the employee’s:
- Tax code
- Previous pay
- Tax amount
You enter these values into payroll.
TIP: You no longer need to submit the P45 (Starter) form to HMRC. The usual Full Payment Submission (FPS) includes your employee information.
Resolution
CAUTION: Do not enter negative P45 amounts for an employee. If you think an employee’s tax is wrong check it using the HMRC Taxable Pay Tables Manual Method (opens in new tab). You can also call the HMRC Employer Helpline on 0300 200 3200 before you enter the details.
To enter P45 details, complete the following steps:
- Go to the Employees tab. Select the relevant employee to open their record.
- Under Previous Tax Details, in the Starting Basis list, select Employee declaration: P45.
-
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. B Select this declaration if this is the employee’s only job but since last 6th April they have had another job. Or has received taxable Jobseeker’s Allowance. Or Employment and Support Allowance, or taxable Incapacity Benefit. The employee does not receive a state or occupational pension. C Select this declaration if the employee currently has another job. Also select if they receive a state or occupational pension. - In the Tax Code box, enter the tax code from the P45 (box 6 on the form).
- In the Leaving Date box, enter the previous employment leave date (box 4 on the form).
- Clear or select Week1/Month1 to match the form (after box 6, but before box 7 on the form). If you select this check box, skip to step 10.
- In the Final pay period list, enter the week or month of the employee’s final pay run in their previous employment.
- In the Total Pay To Date box, enter the previous pay value from the P45.
- In the Total Tax To Date box, enter the previous tax value from the P45.
- In the Current Tax Details section, enter the P45 tax code. Clear or check the week1/month1 box to match the P45.
- Select Save.
Related Solutions
- Also read our article Exporting P45
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