Previously We have briefly introduced what P45 and P60 are. Today, we want to introduce another important document when getting paid through the PAYE system: the Starter Checklist. This document will affect your initial tax code when starting a new job, which in turn influences how much tax you will pay. After reading this, you'll have a better understanding of the checklist and how to fill it out.
Table of Contents
What is the Starter Checklist?
As explained in :P45 and P60 - Important Documents for Working in the UK, when you leave a job, your previous employer must prepare a P45 for you. The UK only requires the previous employer to provide the P45 within a reasonable time, unlike the P60, which must be provided by a specific date. Upon receiving the P45, the employee needs to submit Parts 2 and 3 to their new employer.
If the employee transitions seamlessly to a new job, for example, finishing the old job on a Friday and starting the new one on Monday, or if like Dust, you take on an additional job to make ends meet, you may not have a P45 to give to the new employer. In such cases, you need to fill out a Starter Checklist.
The Starter Checklist used to be known as P46 (Employee without a form P45). It is required in the following situations when joining a new company:
1) The employee has a student loan or postgraduate loan;
2) The employee's personal details differ from those shown on the P45;
3) The employee does not have a P45; or
4) The employee is assigned to work in the UK by an overseas employer, and the work is temporary.
The purpose of the checklist is to allow the employer to assign a suitable tax code for the new employee and help calculate the correct amount of tax to deduct on the first payday. If it is not filled out, the employee's tax code will be “0T” (or “S0T” in Scotland). Both 0T and S0T are emergency tax codes where you won’t have any personal allowance, and all your earnings will be taxed.
How to fill out the Starter Checklist
It includes the following sections: Employee’s personal details, Employee statement, Student loans, and Declaration. You can choose to fill it out on paper or online. The paper Starter Checklist is usually given to you by your employer on your first day (if needed).
To fill it out online, you can visit the following URL:
1) Employee’s personal details
Fill in your basic personal information, such as name, address, gender, date of birth, National Insurance number, and start date.
2) Employee statement
This part is important, and you need to answer the following questions:
A. Do you have another job?
B. Do you receive payments from a State,
workplace or private pension?
C. Since 6 April have you received payments from:
another job which has ended or any of the following taxable benefits: Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA) and Incapacity Benefit
Answer truthfully and avoid making mistakes.
Additionally, you need to choose which of the following statements applies to you.
Statement A
Select Statement A if this is your first job since 6 April and since the 6 April you have not received
payments from any of the following: Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), or Incapacity Benefit.
Statement B
Choose Statement B if one of the following applies:
- Since 6 April you have had another job but you do not have a P45
- Since the 6 April you have received payments from any of the following: Jobseeker’s Allowance (JSA)、Employment and Support Allowance (ESA) and Incapacity Benefit。
Statement C
Choose Statement C if one of the following applies:
- You have another job
- You are in receipt of a State, workplace or private pension.
3) Student Loans
This part is simple. If you have not taken out a student or postgraduate loan in the UK, answer "No" to Question 11, "Do you have a student or postgraduate loan?" and you won’t need to answer any further questions.
4) Declaration
If all the information in the Starter Form is correct, write your full name, sign, and date it to complete the process.
Conclusion
I hope after reading this introduction, you have a better understanding of the Starter Checklist, making it easier to handle form filling when starting a new job.
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(The above information is for reference only. Please refer to the official website for everything.)
