When you leave employment you should receive a form P45. This will show:
- your PAYE tax code number;
- your total earnings for the tax year to date; and
- how much tax has been deducted from your earnings for the tax year to date.
It is important that you receive a P45 on leaving employment. If you do not receive it, you may find you have to pay more tax initially in your new job, until your correct code number is confirmed.
Remember, however, that your termination date is not always the date on the P45. Your P45 is not proof of dismissal, and you don’t have to wait for a P45 before bringing a claim in the employment tribunal. Indeed, if you do wait you may go beyond the three-month time limit for making your claim, and lose the right to pursue it.