Which form is given by an employer to an employee who leaves employment during the tax year?

Which form is given by an employer to an employee who leaves employment during the tax year?

• A. Form P45
• B. Form P12
• C. Form P60
• D. Form P21

Answer: (A)

When an employee leaves part way through the tax year, the form issued is the P45. It records how much the person has earned so far in the current tax year and how much tax has been paid to date, along with their leaving date, tax code, and any remaining tax credits. Part of the form goes to Revenue to update the person’s tax position, and another part is given to the employee to pass to a new employer so tax can be calculated correctly from the next job without starting from scratch. The other forms serve different purposes: a year-end statement for those who were employed the whole year, a document used to transfer tax credits between jobs, and a year-end summary of tax after assessment, respectively—so they aren’t the form used when someone leaves during the tax year.

When an employee leaves part way through the tax year, the form issued is the P45. It records how much the person has earned so far in the current tax year and how much tax has been paid to date, along with their leaving date, tax code, and any remaining tax credits. Part of the form goes to Revenue to update the person’s tax position, and another part is given to the employee to pass to a new employer so tax can be calculated correctly from the next job without starting from scratch.

The other forms serve different purposes: a year-end statement for those who were employed the whole year, a document used to transfer tax credits between jobs, and a year-end summary of tax after assessment, respectively—so they aren’t the form used when someone leaves during the tax year.