P45 (tax)
Tax reference code / From Wikipedia, the free encyclopedia
In the United Kingdom, and formerly in the Republic of Ireland, a P45 is the reference code of a document titled Details of employee leaving work. The term is used in British and Irish slang as a metonym for termination of employment. The equivalent slang term in the United States is "pink slip".
A P45 is issued by the employer when an employee leaves work.[1][2]
A P45 is also issued by a pension provider when one claims their pension savings held with the pension provider. When one takes out their entire pension fund as a lump sum, a part of this amount will be considered taxable earnings, and this will need to be reported to HMRC. In such cases, one receives a P45 from the pension provider for their record. This can also be passed on to a new employer if the person continues to work.[3][4]