P46 which statement to tick

By answering yes to statement B on the P46, the new employee will be placed on a W1 or M1 tax code which stands for week 1 or month 1, depending on whether they are paid weekly or monthly. This statement indicates that they have received other taxable income during the tax year that may affect how much personal allowance they are entitled to. By using a W1 M1 tax code, employers avoid giving too much personal allowance to the new employee, leaving them in a position where they need to repay tax because they have received too much free pay which they may have benefitted from in their previous employment.

The W1 or M1 tax code is a temporary code and it will be amended once the new employer receives an updated tax code from HMRC. If an employee is planced on a W1 or M1 tax code and a correct code has not been issued then the first thing to do is for the employee to call HMRC on to discuss their situation and get it changed.

Remaining on a W1 or M1 tax code to the end of a tax year can mean that an individual end up paying too much tax and may be owed a refund. By choosing statement C on the HMRC P46 form means the employer will put the individual on one of the following tax codes, depending on their gross pay, and that they will not receive any personal allowance:.

If an employee feels that any of these tax codes have been assigned incorrectly or have not heard anything from HMRC in regards to correcting the code, then they must call HMRC on You can download a copy of a P46 here , however, it is now archived on the HMRC website since the form has now been replaced by the new starter checklist. Essentially the starter checklist and P46 are the same forms, but with a different name and different appearance. This is due to a small reform to digitise the payroll system meaning employers need to report payroll and changes online using RTI submissions.

If you are starting your first job, then you will most likely be asked by your employer to fill in a P46 form so they know which tax code to put you on. Normally your employer will find information about your tax code on a P45, which is a form issued when you leave a job but if this is your first job a P45 will not be available. I do not receive a state or occupational pension Statement C I have another job or receive a state or occupational pension A new box - Statement D - has also been added to enable former students to indicate to their employer to make Student Loan deductions from their pay.

Previous page Next page. Print this page. Is this page useful? Maybe Yes this page is useful No this page is not useful. Thank you for your feedback. Report a problem with this page. What were you doing? What went wrong? Email address. This enables the employer to put them on a suitable tax code which may be an emergency tax code depending on the statement they choose.

The employee must choose an option. This statement tells the Employer that they have had no other forms of taxable income during the tax year and want them to give you all the tax-free pay you are entitled to. If the employee has not had any other taxable income and start their job part way through the tax year , the employer will use this tax code to ensure that the new employee receives any previous personal allowance they were entitled to in their first pay packet.

That could mean the new employee pays very little tax in the early part of their new employment, depending on their gross pay. I do not receive a State or Occupational Pension. By answering yes to statement B on the starter checklist, the new employee will be placed on a W1 or M1 tax code which stands for week 1 or month 1, depending on whether they are paid weekly or monthly.

This statement indicates that they have received other taxable income during the tax year that may affect how much personal allowance they are entitled to.

By using a W1 M1 tax code, employers avoid giving too much personal allowance to the new employee, leaving them in a position where they need to repay tax because they have received too much free pay which they may have benefitted from in their previous employment.