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If you're starting your first job

If you're a student and you've done some part-time work this tax year, you may have a form P45 from your previous employer. This gives details of your earnings and the tax you've paid. A tax year runs from 6 April to the following 5 April.

If you haven't got a P45, your new employer will ask you to fill in a form P46. It's important you complete this before your first pay day so your employer knows what tax code to use. They'll send the P46 to HM Revenue & Customs (HMRC) so that they can set up a record for you and review your tax code.

Your employer uses your tax code to work out how much tax to take off your wages through the PAYE (Pay As You Earn) system.

What tax you'll pay

There are three main rates of Income Tax:

• 20 per cent on income up to £34,370 (basic rate)
• 40 per cent on income between £34,371 and £150,000 (higher rate)
• 50 per cent on income of £150,001 or more (additional rate)

Nearly everyone who lives in the UK gets a tax-free personal allowance. This is the amount of income you can receive, spread equally over the year, without having to pay tax on it.

• Starting your first job - tax and National Insurance

• Basic information on Income Tax

If you're changing jobs

When you leave a job where you've paid tax through PAYE, your employer will give you a P45. Give it to your next employer so they know what tax you've paid so far this year. It'll help them make sure you won't pay too much tax in the future.

If you've lost your P45, you may be asked to fill in a P46, your new employer will not necessarily give you a P46 to fill in, but will ask you for the relevant information to allocate a tax code and work out the tax due on your first pay day. HMRC will then process your P46 or the information passed on from your employer and, where necessary, revise your tax code. It's important you provide this as soon as possible before your first pay day so your employer knows what tax code to use.

A P46 contains important details that affect the tax you'll pay, like:

• your National Insurance number - HMRC uses this to identify you
• whether you've been claiming Jobseeker's Allowance or Incapacity Benefit - or you started getting a pension since the beginning of the tax year
• whether you've got a second job
• whether you're paying off a student loan

If you change jobs often

It's really important to make sure you provide your employer with the P46 or information straightaway if you can't get a P45. If you don't you could end up paying too much tax.

If you're a student and you work part-time, see the section on students and working below.

• Details of how to pay tax through your employment

• More information on tax codes and what they mean

If you've got more than one job

If you start a second job without giving up your other one you won't get a P45. Ask your new employer for a P46 form. They may have their own forms or arrangements for getting the relevant information needed from you, but you must let them know you've already got another job. You don't have to tell them where you're working or how much you're earning.

You'll have a tax code for each employer telling them what tax allowances you get. Your Personal Allowance will normally only apply to your main job.

To avoid paying too much tax you can ask HMRC to split your Personal Allowance between your jobs. For example, if you don't pay tax on your earnings from your first job you can use any spare Personal Allowance against your other job or jobs. If you've got several sources of income that are taxed through PAYE it can get confusing.

Check your payslips carefully to make sure you're paying the right tax.

• How to check your tax if you get more than one tax code

If you're leaving a job

Make sure you get a form P45 from your employer when you leave - unless you're a student who has not had tax deducted because you completed form P38S Student Employees - see the section below 'If you're a student and working'. If you start a new job you'll need to give your P45 to your new employer. They'll use it to work out your tax.

• Employee tax and National Insurance

If you're claiming benefits after leaving a job

If you are starting to claim Jobseeker's Allowance after leaving your job, you'll need to give your P45 to the Department for Work and Pensions (DWP). They'll use it to pay you any tax refund you're entitled to either when your claim finishes or at the end of the tax year if you are still claiming.

• Claiming a tax refund when you stop work

If you're a student and working

If you're a student with a holiday job, you may not have to pay tax. You can fill in a form P38S for student employees if all the following apply to you:

• you're a full-time student in the UK and you only work in the holidays
• you're going back to full-time education after the holiday
• your total income for the year is less than your Personal Allowance

You can't use form P38S for your holiday job if you've also got a part-time job during term-time.

Please note: From 6 April 2023 employers will no longer use the P38(S) process. Your employer will operate PAYE (Pay As You Earn) to deduct Income Tax and National Insurance from your wages. If you are employed by an employer who is part of the Real Time Information (RTI) pilot, the normal PAYE process will apply from 6 April 2012. You can find out more about students and tax by following the second link below.

• Find form P38S for student employees using HMRC's find a form tool Opens new window

• Student tax advice Opens new window

If you're starting self-employment

You must let HMRC know as soon as you become self-employed - even if you already fill in a Self Assessment tax return. If you don't do this you'll have to pay a penalty. You'll fill in a tax return each year, giving details of your earnings and any other income so they can work out how much tax you have to pay.

You can register for Self Assessment by calling the Newly Self-Employed Helpline on 0845 915 4515 - follow the first link below.

• Contact the helpline to register as self-employed Opens new window

If you start working after claiming jobseeker's allowance

When you stop claiming jobseeker’s allowance to start work for a new employer, DWP will check the amount of tax paid against your taxable income including the amount of jobseeker’s allowance you've received. They will refund you any overpayment and issue a P45(U) which you should give to your new employer.

If you're retiring from work altogether

When you retire you must let HMRC know if you'll be getting a company pension.

If you're starting to get a company pension

Your employer will send HMRC a P46(PEN) Notification of Pension Starting form and give you a copy to keep. HMRC will use the information to give you a new tax code and make sure you pay the right amount of tax.

• Look up form P46(PEN) using HMRC's find a form tool Opens new window

• Pensions, state benefits and your tax code

If you're not getting a company pension

Your employer will give you a P45. If you're starting to receive a personal pension (not from your employer) you should send your P45 to your pension company.

More useful links

• Employee tax and National Insurance

• Get information on PAYE forms: P45, P46, P60, P11D

• Find out how to report changes which might affect your Income Tax

• Check you're paying the right amount of Income Tax

• How to correct mistakes in your tax

• Starting your first job - tax and National Insurance Opens new window

Useful contacts

• Money, tax and benefits contacts

• National Insurance Contributions Office