Where do I get a P45 document, and why is my umbrella company requesting it?

If you are moving from permanent employment to contract work or are switching umbrella companies, you must provide your new umbrella company with a copy of your P45. We answer a commonly asked question by contractors during the registration process: “Where do I get a P45 document, and why is my umbrella company requesting it?”

What is a P45?

A P45 is a document that your employer will give you when you stop working for them. It shows how much tax you’ve paid on your salary so far in the tax year (6^th April—5^th April). By law, your employer must provide you with a P45 once you have finished working for them. You must ask them to provide one if they do not issue one.

A P45 consists of four parts:

1. Part 1 – Your employer sends this section to HMRC, and you will receive all other parts.
2. Part 2 and 3 – You need to give these sections to your new employer or Jobcentre Plus (if you’re not working).
3. Part 1A – You will keep this section for your own records.

Where do I get a P45 document from?

You can request a P45 from your employer once you cease your employment with them.

Why is my umbrella company requesting a P45?

Before you start employment with your umbrella company, you must provide them with a copy of your most recent P45 (issued in the current tax year). When you register with a new umbrella company, they won’t know how much tax you’ve paid so far in the current tax year, and the P45 lets your employer know which tax code to apply to your pay. If you do not provide a P45 by your first payment, your employer will put you on the emergency tax code, which is the required standard set by HMRC. Don’t worry – any overpayments of tax can be reclaimed; however, this is easily avoided by providing a P45. If you do not have a P45, you can complete a Starter Checklist for PAYE – which we will explain further in the next section.

I don’t have a P45 – what document should I provide instead?

If you do not have a P45 issued in the current tax year, you can complete the Starter Checklist for PAYE. The Starter Checklist for PAYE provides your new umbrella company with the information they need to be able to run payroll on your first payday and ensure you pay the right amount of tax. All you need to do is complete the form and email, post, or give it to your employer – do not send the Starter Checklist for PAYE to HMRC.

If you have registered with Churchill Knight Umbrella, once we receive your P45 or completed Starter Checklist for PAYE, we will update your payroll information ready for your first payday. If you have any questions about the documents you need to submit or need to speak to a member of our onboarding team, please call 01707 669043.

What other documents do I need to provide when I register with an umbrella company?

When you register with an umbrella company, you must also provide the following documents to complete onboarding and be ready for your first payment:

• A signed copy of your Contract of Employment—You must review your contract carefully, sign it, and return it to your umbrella company. When you register with Churchill Knight Umbrella, this will be sent to you via Signable, and you can sign it electronically.
• A copy of your ID and Right to Work in the UK – Umbrella companies are legally required to prove that you are eligible to work in the UK. If you are a British or Irish citizen, you can use the photo page of your passport as proof of your right to work in the UK. Otherwise, please use the government’s online right-to-work checking service to generate a share code and send this to your umbrella company with your date of birth.

To submit your documents to Churchill Knight Umbrella, please upload them via our secure online form or email them to our Onboarding department.

Request a tailored take-home pay illustration

To find out more about our umbrella service or to request a tailored take-home pay illustration, please call our friendly Sales Consultants on 01707 871622. You can also schedule a time that suits you. We will be in touch to answer any questions you may have.