UK employer guide to the HMRC starter checklist

The HM Revenue and Customs Starter Checklist, or HMRC Starter Checklist for short, is a form new hires without a P45 must fill out.

Previously known as the P46, it’s one of the key HR forms for new staff, which should be included as part of the onboarding phase in your company. Ensuring the HMRC new starter form gets filled out means you can upload everything into your payroll system right from the start, and tax new staff correctly from their first payday. It is therefore a vital step for any business looking to maintain compliance and avoid administrative headaches later on.

Let’s take a closer look at what the new employee starter form is in relation to payroll and how to use it. 

What is the HMRC Starter Checklist / Form?

Simply put, the HM Revenue and Customs (HMRC) Starter Checklist collects vital information that HMRC requires in order to retrieve the correct tax code for your employee. This includes details of their previous income and any student loan repayments.

Is it the same as a P46 in the UK?

Yes, the HMRC Starter Checklist used to be known as a P46, or P46 Starter Checklist. While the purpose remains the same - to collect information when onboarding UK employees who don't have a P45 form - the name has been updated to reflect its role more clearly. You might also hear it called the ‘HMRC Starter Form’, or ‘new employee starter form or checklist’.

Does an employee need one if they have a P45?

No, if the employee has their P45, you don’t need them to complete a new employee starter checklist at all. The P45 provides all the necessary information to continue taxing the employee correctly.

Where can I get an HM Revenue Starter Checklist in the UK?

HMRC’s Starter Checklist is readily available online. Employers can download it directly as a free printable PDF from HMRC’s website. This PDF makes it accessible and easy to distribute to new hires.

This is what it looks like:

How to fill out HMRC’s starter form?

Filling out the HM Revenue and Customs Starter Checklist is pretty straightforward, even though it spans a few pages. It will guide your employee through a series of questions about their previous jobs and their earnings within the current tax year. Ideally, employees should complete this as part of your onboarding process, and will need the following information to hand.

What information is needed to complete the HMRC Starter Checklist?

Here’s a list of all the information an employee will require to complete the process:

✅ Some personal details, like their name, full address and date of birth (DOB)

✅ Their National Insurance Number

✅ Their start date at your company

✅ Information of any student or postgraduate loans

✅ The last tax code they were on

✅ Details of any income received in the current tax year from another job, or:

• A pension or Jobseeker’s Allowance (JA)

• Employment and Support Allowance (ESA)

• Incapacity Benefit (IB)

Sometimes, a company sends an employee overseas to work for a specific period of time. In this case, the worker must also fill out a new employee starter checklist and include their passport number on it. Once all details are entered, they must sign the declaration on the final page to validate the information.

It’s important for employees to answer all these questions accurately so they can be taxed correctly.

Which employment situation statement should an employee choose?

When they fill out their HMRC Starter Checklist, employees will have to choose between three separate statements: A, B, or C. Which one they choose will depend on their personal situation:

What if an employee doesn’t have a P45 or starter checklist?

If a new employee doesn’t have a P45 from their previous employer, the HMRC Starter Checklist form is their next best option. Completing this form will allow you to add them to your payroll software and process their pay accurately. Without either document, you’ll need to use an emergency tax code, which could result in incorrect tax deductions.

When and how do I submit a starter checklist?

Interestingly, you don’t submit the starter checklist to HMRC. Instead, you use the information it contains to update your own payroll software (like PayFit!), which then communicates the relevant details to HMRC through Real Time Information (RTI) submissions. This process ensures HMRC has up-to-date information on all your employees’ tax codes and statuses.

A UK payroll compliance checklist helps you maintain oversight of all these HMRC requirements throughout the tax year, ensuring nothing is overlooked.

Do foreign workers pay National Insurance in the UK?

Yes, foreign workers in the UK are subject to National Insurance contributions, just like UK residents. The information collected through the starter checklist helps determine their correct tax and National Insurance (NI) contribution levels, ensuring they’re treated fairly and in line with UK legal requirements and employment laws.

Following the HMRC Starter Checklist you’ll have one less thing to check off

The HM Revenue and Customs Starter Checklist might seem like just another piece of paperwork, but it plays a crucial role in ensuring your employees are taxed correctly right from their start date. While filling one out is pretty straightforward, it’s important that employees pick the right statement to fill out on it. The starter form can also help you determine the right amount of tax and NI to pay for foreign workers.

By understanding how to obtain, fill out, and use this checklist, you can streamline your onboarding process, ensuring compliance and accuracy in payroll and all associated reporting by the end of the tax month.

Streamline your onboarding process with payroll software

Whether you’re dealing with the complexities of P11Ds or navigating PAYE, good payroll software has automated features and insights to manage your payroll more efficiently. Remember, while the HM Revenue Starter Checklist is a critical document for new starters without a P45, automate payroll and HR software can help you ensure that its integration into your payroll system is seamless and straightforward.

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