Employers with new workers or looking to employee staff need various documents to get them on payrolls. Employees must provide various details to enable employers to place them in the correct tax codes and declare them to the HMRC.
The PAYE starter checklist is one form that employees must submit. It is tailored for workers who start with a new employer but don’t have a P45.
In 2023, the starter checklist for PAYE replaced the P46.
New employees without a P45 must fill out this form to join the payroll. This simple guide highlights some fundamentals of taking on a new employee.
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What is an HMRC PAYE starter checklist?
What does PAYE Stand for?
PAYE stands for ‘Pay As You Earn‘
An employee uses a starter checklist to collect information about a new hire. The details in this form help the employer complete the Full Payment Submission (FPS).
Employees should fill out starter checklists and submit them before the first payday to give the company time to inform the HMRC and assign them the correct tax code.
The Government website has an online PAYE starter checklist available, but you can also print it and fill it out manually.
Is the PAYE starter checklist a P46?
Although some employers might still refer to the starter checklist as a P46 when asking for employee details, it is not. The checklist replaced the P46, which is no longer in use.
What details do you need for PAYE?
You must provide your date of birth, complete address, gender and the start date of your new job for PAYE. The employee P45 form requires you to fill in the following details:
PAYE Starter Checklist
Full name
Full Name details
Gender (optional)
Date of birth
Current home address (including postcode)
National Insurance number (if known)
Employment start date
Passport number (if arriving from overseas)
Why it matters: Using the employee’s legal name ensures accurate HMRC records, NI contributions, and payroll documentation. Any mismatch may cause issues with tax records or future employment verification.
Why it matters: The NI number links the employee to their national tax and benefit records. Without it, HMRC may struggle to accurately track tax and contributions.
Tax year
Total pay and updated tax payment for the current tax year
Enter the tax year during which the employment starts. In the UK, the tax year runs from 6 April to 5 April the following year.
Why it matters: Determining the correct tax year helps accurately track cumulative earnings and tax paid. It ensures that the correct year-to-date figures are submitted to HMRC.
Employment Status
Leaving date from the last job
Statement A – First job since 6 April. No taxable benefits/pension.
Statement B – Had another job or received taxable benefits/pension since 6 April. No P45 provided.
Statement C – Has another job or receives a workplace pension.
Previous Employment
Record whether the employee had a previous job or source of taxable income since 6 April of the current tax year. If yes, collect:
Employer name (if known)
Date of leaving
Did they receive a P45?
Any benefits or pension payments received?
Why it matters: This affects which PAYE starter statement they should select (A, B, or C) and whether a basic rate (BR) or a cumulative tax code is applied. Getting it wrong may lead to under/overpayment of tax.
Student Loan Information
Student loan deduction status
Does the employee have a Student Loan that’s not yet fully repaid?
If YES, is the employee still studying full-time?
Student Loan Plan Type
Why it matters: Deductions for student loans are managed via payroll. Choosing the wrong plan or omitting this step can result in incorrect deductions and repayments
Tax Code
Existing tax code
If the employee does not have a P45, use the selected starter statement (A, B, or C) to assign an appropriate tax code
If a P45 is provided later, update the tax code accordingly. Also:
Make a note of any temporary/emergency code
Record the employee’s current tax code if known
Why it matters: The tax code tells the payroll system how much income to tax. Getting it wrong leads to over- or underpayment and may require backdated corrections.
Declaration
Employee has confirmed accuracy of all provided information
Starter checklist signed and dated by employee
Form reviewed and signed by HR/payroll officer
GDPR & Data Protection
Employee provided with privacy notice
Consent for data storage and processing obtained (if required)
Payroll data stored securely in line with GDPR
This information stays on the payroll records for the following 3 tax years.
Do you need a P45 if you have a starter checklist?
A P45 is mandatory when changing jobs. The form ensures that you are in the correct tax code. Without it, an employer can use an emergency tax code, meaning you could end up paying more than you should.
However, a PAYE checklist will do if you don’t have a recent P45. So, you can submit one or the other. An employer should provide a new employee with a starter checklist if a P45 is absent.
If you don’t receive the checklist, print one out, fill it out and submit it as necessary.
Completing the PAYE Starter Checklist
A common tax problem among employed individuals is the failure to provide accurate information to employers. Therefore, you should be careful when filling out your starter checklist. The form has three statements, A, B and C, that employees should choose between to define their employment status. Picking the wrong statement could put you in the wrong tax code, leading to a miscalculation of the tax due.
So, take the time to analyse each option thoroughly to make sure you tick the one that applies to you. If you select a statement incorrectly and end up with a tax bill, then there isn’t much of a solution except to work out a payment plan with HMRC. However, if you completed the starter checklist properly, but your employer still placed you in the wrong tax code, then that counts as an ‘employer error,’ and you might not be liable for the unpaid tax. The HMRC offers tools that employers can use to identify workers’ tax codes. You can keep a copy of the checklist or note your answers for reference if an issue arises.
After completing the PAYE starter checklist, workers must submit it to the employer, who forwards it to the payroll department. Completed checklists should not be sent to HMRC.
