When Must Employers Issue a P45? Deadlines, Exceptions and Payroll Rules (2026/27)

When someone leaves your business, the P45 carries their pay and tax history to their next employer. Issue it late and your former employee may end up on an emergency tax code. Get it wrong and you may be correcting payroll submissions months later. This guide explains when employers must issue a P45, how the deadline works in a real payroll cycle, the exceptions, and what an employee can do if a P45 never arrives.

Last reviewed: [Octobar 2026

When must employers issue a P45?

Employers must complete a P45 on the day an employee’s employment ends or, if that is not practicable, without unreasonable delay. The duty comes from regulation 36 of the Income Tax (PAYE) Regulations 2003. In practice, most employers issue the P45 with the final payslip, once final pay has been processed.

Do employers have to give a P45 to every leaver? Almost always. The duty covers any employee for whom a tax code has been issued, whatever the reason for leaving: resignation, dismissal, redundancy or the end of a fixed-term contract. Part-time and casual staff are covered too. The main exceptions, such as retirement on a pension you pay, are explained below.

New to P45s? This guide covers the employer’s duty. For what a P45 shows and how it differs from a P60, see P60 vs P45 explained.

What “without unreasonable delay” means in practice

The law sets no fixed number of days. The P45 deadline is the leaving day itself, or as soon as you reasonably can after it. For most businesses, that means the pay run that includes the employee’s final payment.

A P45 depends on final figures, so you cannot complete it until you know the last payment, including holiday pay, overtime, bonus or pay in lieu of notice. Once those figures are settled, there is no reason to wait.

Payroll frequency	When the P45 usually goes out
Weekly	With the final weekly payslip
Fortnightly	With the payslip for the period they left
Monthly	With the month-end payslip that includes final pay

So how long does an employer have to issue a P45? A monthly-paid employee who leaves on the 3rd may wait until month end, which is generally reasonable. Holding the P45 back after final pay has run, for example until equipment is returned, is not. Issuing it too early is also a problem: the totals would be wrong, and you cannot amend a P45 or issue a second one.

Step by step: what to do when an employee leaves

Confirm the leaving date: the actual last day of employment under the contract.
Process final pay: salary, accrued holiday pay, overtime, bonus and any pay in lieu of notice, with tax and National Insurance deducted as normal.
Report the leaving date on your Full Payment Submission (FPS). If someone is paid for the last time before 6 April but leaves in the new tax year, do not put the leaving date on that FPS; report it on a later one.
Produce the P45 from your payroll software or HMRC’s free Basic PAYE Tools.
Give Parts 1A, 2 and 3 to the employee with the final payslip. An electronic P45 is fine if they can save and print it.
Keep payroll records for at least three years after the end of the tax year.

If a leaver returns before you issued the P45, keep the same payroll ID and remove the leaving date. If you had already issued it, treat them as a new starter with a new payroll ID.

Which parts of the P45 go where

Part	What happens to it
Part 1	No longer posted to HMRC. Your FPS reports the leaving date instead.
Part 1A	The employee keeps it as their record of pay and tax to date.
Parts 2 and 3	The employee gives them to their next employer, or to Jobcentre Plus for a benefit claim.

Some guides still say Part 1 is posted to HMRC. That was the process before Real Time Information. HMRC’s current P45 form simply tells employers to report the leaving date on the FPS and give Parts 1A, 2 and 3 to the employee.

Special situations

Employee never paid, or a new starter who never turns up

If the person was reported to HMRC and a tax code was allocated, issue a P45 when the employment ends, even with no pay. It shows nil pay and nil tax, plus the tax code and leaving date. If they were set up in your software but never reported or given a code, there is no HMRC employment to end; check with your payroll provider before removing the record.

Employee retires and you pay their pension

This is not a cessation of employment in PAYE terms. Do not issue a P45 or report a leaving date. If their pension comes from a separate scheme, issue a P45 as normal.

Employee dies

Enter the date of death in the leaving date field on your final FPS. Do not post a standard P45 to their home as if they had left, and check HMRC’s guidance before providing documents to the personal representatives.

Statutory payments continue after leaving

If someone leaves while receiving a payment such as Statutory Maternity Pay, you can either keep their usual code and issue the P45 after the final payment, using that date as the leaving date, or issue the P45 when they stop working and tax the remaining payments using code 0T on a week 1 or month 1 basis.

Paying someone after you’ve issued a P45

Never issue a second or amended P45. Tax the payment using code 0T on a week 1 or month 1 basis, report it on your next FPS with the “Payment after leaving” indicator, and give the employee written confirmation.

Use S0T for Scottish taxpayers and C0T for Welsh taxpayers.
Use the original leaving date and payroll ID on the FPS.
Add the payment to year-to-date figures if it is in the same tax year.
Confirm the payment date, gross amount and deductions in writing.

Some guides say to reuse the tax code from the P45. GOV.UK says otherwise: after the P45 is issued, the code is 0T on a non-cumulative basis.

Illustrative example: a monthly-paid leaver with a late bonus

Illustrative example. Assumptions: fictional employer and employee, monthly payroll on the last working day, no statutory payments.

Leaving date: Tom resigns and his last day is 3 November 2026.
Final pay: his salary to 3 November and accrued holiday pay are paid in the November payroll on 30 November.
Reporting: the November FPS includes his final payment and his 3 November leaving date.
P45: Parts 1A, 2 and 3 go to Tom with his final payslip on 30 November. Waiting until month end is reasonable, because his final figures were not known before then.
Late bonus: in January 2027 a bonus for his last quarter is approved. His employer does not issue a new P45. It taxes the bonus using code 0T on a month 1 basis, reports it on the January FPS with his original leaving date and the “Payment after leaving” indicator, and sends Tom a letter showing the gross bonus and deductions.

If Tom has paid too much tax on the bonus, he can claim it back from HMRC. His employer has followed the rules either way.

What happens if an employer doesn’t issue a P45

HMRC may ask for the missing P45, follow up formally or open an employer compliance check, and penalties can apply. The employee may be put on an emergency tax code in their next job and face delays with benefit claims.

Most cases start when a former employee contacts HMRC about a wrong tax code. Responding quickly usually settles it: process final pay, report the leaving date and issue the P45.

Employee? What to do if your employer won’t give you a P45

An employer not giving a P45 rarely stops you starting a new job. Ask for it in writing, use the starter checklist with your new employer, and contact HMRC if your old employer still does not act.

Ask in writing. Email payroll or HR with your leaving date. Delays are often just monthly payroll timing.
Use the starter checklist with your new employer. You may be on a temporary tax code at first.
Check your HMRC personal tax account to see what HMRC holds about your employment.
Contact HMRC if your old employer still does not act.

A lost P45 cannot be replaced, and “replacement P45” documents from third-party websites are not a substitute. Use the starter checklist instead.

Common employer mistakes with P45s

Issuing the P45 before final pay is processed.
Holding the P45 back as leverage.
Issuing a second or amended P45 for a late payment.
Taxing a payment after leaving on the old code instead of 0T.
Issuing a P45 when someone retires on a pension you pay.
Putting a next-tax-year leaving date on the same FPS as the final payment.
Leaving no-shows on payroll indefinitely.

Frequently asked questions

How long does an employer have to issue a P45?

There is no fixed number of days. It must be issued on the leaving day or without unreasonable delay, which in practice usually means with the final payslip.

Do employers have to give a P45 to every leaver?

Yes, if a tax code has been issued for the employee. The main exception is someone who retires and then receives a pension from the same employer.

Does an employee who retires get a P45?

Not if you go on paying them a pension through PAYE, because that is not treated as leaving. If their pension comes from a separate scheme, they get a P45 as normal.

Can a P45 be sent by email?

Yes. Many employers issue P45s electronically through payroll software. The employee must be able to save and print it.

Do I issue a P45 if the employee was never paid?

Yes, if they were reported to HMRC and given a tax code. The P45 shows nil pay and nil tax.

What tax code do I use for a payment after the P45?

Code 0T on a week 1 or month 1 basis, or S0T and C0T for Scottish and Welsh taxpayers. Report it with the “Payment after leaving” indicator.

Can an employer refuse to give a P45?

No. Issuing a P45 is a legal duty under the PAYE Regulations. Employees who do not receive one should ask in writing, use the starter checklist and contact HMRC if needed.

Need help with leavers and payroll?

Getting P45s right depends on accurate final pay, correct FPS reporting and knowing the exceptions. Speak to Major Accountancy about [INSERT VERIFIED SERVICE, e.g. payroll and leaver processing]. We can handle leavers, FPS submissions and P45s so nothing is missed.

Sources

About the author and reviewer

Written by Marina Jahan

Senior Content Strategist, SEO and Marketing Specialist · Major Accountancy Ltd

Marina leads content strategy at Major Accountancy, turning HMRC rules into plain-English guides for employers and employees. She researches every article from primary sources, including legislation, GOV.UK guidance and HMRC’s internal manuals.

Technically reviewed by Shamayun Chowdhury

BA (Hons), MSc, ACMA, CMA, CIPFA (Affil), MAAT, AATQB
Senior Accountant, Leicester · Director, Major Accountancy Ltd · Lecturer, Nottingham Trent University · 15+ years’ UK practice

LinkedIn · Companies House

How we checked this guide

Rules were taken from regulation 36 of the PAYE Regulations 2003, GOV.UK’s employer guidance on employees leaving, HMRC’s PAYE Manual and HMRC’s current P45 form. This article is general information, not personal tax advice. We review this guide every 12 months, or sooner if HMRC guidance changes.

When Must Employers Issue a P45? Deadline & Rules (2026/27)