In this section:

Check you're paying the right tax
How to correct mistakes in your tax
Tax when starting, leaving or retiring from work
Reporting changes that might affect your tax

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Tax when starting, leaving or retiring from work

Tax when starting, leaving or retiring from work

Tax can seem complicated when your work situation changes or you start your first job. But taking time to get the paperwork right can help you avoid paying too much or too little tax.

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 us so we 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 two main rates of Income Tax:

20 per cent on income from £1 to £34,800 (the basic rate)
40 per cent on income over £34,801 (the higher 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.

Find out what to do about tax when you start your first job

Get basic information about 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'll have to fill in a P46 so we can give you a new tax code. A P46 contains important details that affect the tax you'll pay, like:

your National Insurance number - we use 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 fill in a P46 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.

Get details of how you pay tax through your employment

Find out what your tax code means

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. So you'll have to fill in a P46. Ask your new employer for this form. When you fill it in it'll 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. This tells them what tax allowances you get. But your Personal Allowance will normally only apply to your main job.

To avoid paying too much tax, you can ask us to split your Personal Allowance between your jobs if for example you don't pay tax on your earnings from your first job and you're not using all of your Personal Allowance.

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.

Find out 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 doesn't pay tax and you complete form P38S Student Employees. 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.

Read about how you're taxed as an employee

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.

It's a really good idea to check your tax through our Tax+U website.

Go to form P38S for student employees

Check what tax you pay if you're a working student at our Tax+U website

Read guidance for people who work while they study on the Directgov website

If you're starting self-employment

You must let us 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 we can work out how much tax you have to pay.

You can register for Self Assessment by calling our newly Self-Employed Helpline on Tel 0845 9154 515 (open from 8.00 am to 8.00 pm Monday to Friday and from 8.00 am to 5.00 pm at weekends).

Find out about Self Assessment for self-employed people

If you're retiring from work altogether

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

If you're starting to get a company pension

Your employer will give you a form P160 to fill in. We'll use the information to give you a new tax code and make sure you pay the right amount of tax.

Look up form P160

Read about pensions, benefits and your tax code

If you're not getting a company pension

Your employer will give you a P45. You'll also get a P161 Pension Enquiry form to fill in. This tells us how your income has changed so we can make sure you pay the right tax.

See why you need to fill in form P161

Go to form P161 Pension Enquiry (PDF 113K)