Definition
A form completed by new employees who do not have a P45 from a previous employer. It provides the information needed to set up the employee on payroll with the correct tax code, including details of student loans and other employment.
UK Context
The P46 form was replaced by the HMRC Starter Checklist. It is not submitted to HMRC but must be retained by the employer. The employee selects one of three statements (A, B, or C) which determines their initial tax code. If no checklist is completed, the employer must use a 0T tax code on a non-cumulative basis.
Best Practices
- Issue the starter checklist to new employees before their first pay date
- Store completed checklists securely as part of the employee's payroll records
- Use the correct emergency tax code based on the employee's chosen statement
Frequently Asked Questions
When is a starter checklist needed?
A starter checklist is needed when a new employee cannot provide a P45 from their previous employer. This applies to first-time workers, those who have been self-employed, or those who have lost their P45.
What are the three statements on the starter checklist?
Statement A: this is the employee's first job since 6 April and they have not received benefits. Statement B: this is now the employee's only job but they have had another since 6 April. Statement C: the employee has another job or pension.