What is the difference between a P45 and a starter checklist when starting a new job?

Full answer

A P45 records your total pay and tax deducted in the current tax year plus your tax code at the date you left a job. Your former employer must give it to you when you leave. Handing it to a new employer lets them carry forward your year-to-date figures and continue taxing you correctly on a cumulative basis, so you neither overpay nor underpay. If you have no P45 - for example a first job, a return from abroad, or a P45 that has not arrived - you complete HMRC's starter checklist. It asks which of three statements applies: this is your only or main job and you have had no other income this year (Statement A), it is now your only job but you have had other income (Statement B), or you have another job or pension as well (Statement C). Your answer determines the temporary code applied: typically the full Personal Allowance code for Statement A, a Week 1/Month 1 (non-cumulative) version for Statement B, and a no-allowance code such as BR for Statement C where the allowance is used elsewhere. Who it affects: every employee starting a new role under PAYE. The practical risk with a starter checklist is being put on an emergency or non-cumulative code, which can mean too much tax in early payslips. HMRC reconciles this once it receives data, and any overpayment is refunded through your pay or after year end. 2026/27 detail: the Personal Allowance remains GBP 12,570 and basic rate 20% on gross income GBP 12,571 to GBP 50,270, so a BR code deducts a flat 20% with no allowance. To check whether your code looks right against your salary, use a take-home pay calculator and compare the implied allowance.

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