P45 – A P45 slip is a form that contains all of the employee’s wages and tax issued during the duration of their employment that they receive upon termination of said employment. This is then passed to the next employer so that the earnings and tax each year and to verify their previous employment. The term P45 has subsequently picked up meaning as a slang term for being let go as it is synonymous with the termination of employment.
P46 – In cases where the tax payer has no P45, either because it is lost, damaged or invalid or if they are being employed for the first time, they will be asked to fill out a P46 form. This will notify HM revenue and customs of the new employment, and the information will be used for the formation of a new P45 once they leave that job.
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