How long keep p45

Prev Next. How much does it cost to change your name? How to spot and deal with scam text messages. You must normally keep your records for another year after the online tax return deadline of 31 January. We suggest that you keep records for the same amount of time even if you pay your tax via PAYE.

The tax return deadline for an online return is 31 January You need to keep your records until 31 January , one year later. Business records Keeping up-to-date and accurate records from the start is important for your business. It makes it easier to fill in your tax return. Instead of sending paper through the post the old employer submits the P45 information to HMRC electronically and gives an electronic or paper copy to the departing employee.

The employee forwards a copy to the new employer to input the data into their payroll system and notify HMRC electronically. If your new employee arrives without a P45 you will need the employee to complete a starter checklist formerly a P46 form and enter the information into your payroll system.

This allows you to calculate temporary tax codes that should be used until notified of new codes by HMRC, or from a P45 later submitted by the employee. When an employee leaves your employ you should provide them with a P45 along with their final payslip.

In practice this may not be available until after they have left your employment and their final payroll has been processed. In the meantime you should use the data from the starter checklist from your new employee to work out a temporary tax code.

P45s, like all tax records, should be kept by the employee, the old employer and the new employer for six years from the end of the tax year to which they relate, however HMRC can carry out retrospective checks up to 20 years so it may be worth keeping for longer. If you receive a P45 form for a prior tax year then you should not use this.

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