Your P45 is a very important document when it comes to your tax code and history. This is the reason why we aim to answer the question of whether or not you will get your P45 form when you are made redundant by your employer. For a holistic view of the topic, we will also explore the benefits and support one can claim while they are on a low income after being made redundant.

Do You Get A P45 When You Are Made Redundant?

Yes, you get a P45 form when you are made redundant by an employer.

Whether an employee leaves their place of employment due to a resignation, termination or being made redundant, their employer is required to provide them with their P45 form.

If your employer does not provide you with your P45 when you are being made redundant, you should ask for it. The P45 is a very important document that mentions the details of your tax payments. If you are to change jobs in the middle of a tax term, you will need the P45 form to provide evidence of your tax payments to your new employer.

The P45 form also mentions the tax code of a PAYE employee. This means that you need your P45 to have evidence of the tax code that applies to your income so that you can share it with your new employer.

If you do not get your P45 form from your previous employer, your new employer will ask you to fill out the “starter checklist” on the UK Government’s website so that the necessary details regarding your income and tax payments can be updated before your first salary is due from them.

However, there are some documents that you will need to fill out the starter checklist and it can take some time until you are assigned a tax code.

It is also likely that in the absence of a P45 form, your new employer puts you on a non-cumulative, emergency tax code. As a result of this, you may end up overpaying your taxes until you are assigned a cumulative and permanent tax code. While you can reclaim overpaid taxes from the HMRC, you will have to wait till the end of the tax term to file a claim.

Even if you do not intend to work or are unable to work after being redundant, you should still ask your previous employer to provide you with your P45 form. You will need this document to claim tax refunds as well as welfare benefits if you are on a low income and need to claim benefits after being made redundant.

While most employers hand over the P45 to departing employees along with their last payslip, it is normal for them to take 2 weeks to give this form to employees who have stopped working with them. Therefore, you can expect to receive your P45 in the next 14-15 days after your last day at work. 

What Help Can You Get When You Are Made Redundant?

You can get help from your previous employer as well as the DWP when you are made redundant. For instance, you can claim compensation from your employer if you are being made redundant. To claim Redundancy Pay, an employee should have worked for their employer for at least 2 years before they can claim compensation for being asked to leave their job.

The official term is Statutory Redundancy Pay which requires employers to pay eligible employees the legal minimum amount as compensation for being made redundant. However, if your employment contract states the amount that you can expect for being made redundant, you will be able to claim it from your employer. This is termed Contractual Redundancy Pay.

When it comes to the DWP or your local council, you can get help to look for a job or get essential training as you search for one if you are made redundant or at risk of being made redundant in the near future. 

The Jobcentre Plus Rapid Response Service can help you prepare for a job or look for one that matches your skills and qualifications. You can contact the JobCentre Rapid Response Service via email at rrs.enquiries@dwp.gov.uk whether you have been made redundant or are at risk of being made redundant in the near future.

Can You Claim Benefits If You Can’t Find A Job After Being Made Redundant?

Yes, you can claim welfare benefits if you are on a low income or cannot get another job after being made redundant by your previous employer.

It is expected that losing a job to redundancy will have an immediate impact on your income. This makes you eligible for income-based, means-tested welfare benefits that can provide you with financial support while you are on a low income.

For instance, while you will be eligible for Universal Credit when you are on a low income due to being made redundant, you will also be asked to agree with your work coach on the number of hours that you will spend in your employment search. 

Similarly, if you qualify for income-based Jobseeker’s Allowance or income-based Employment and Support Allowance, your claim to monthly benefit payments will depend on your commitment to looking for a job as well as evidence to support your commitment. 

Welfare benefits that you can claim by being made redundant include the following:

  • New Style Jobseeker’s Allowance
  • New Style Employment and Support Allowance
  • Universal Credit
  • Pension Credit

Conclusion:

The discussion in this blog post has covered key information regarding a P45 form as well as highlighted its importance for someone looking for another job or hoping to claim benefits after being redundant by their previous employer. These details have helped to conclude that a P45 form must be given to an employee at the end of their employment as it carries details of their tax payments as well as their tax code. If someone is being redundant they will still need their P45 at a new job or to claim benefits.

References:

P45, P60 and P11D forms: workers’ guide).

What is a P45? – Which?

Being made redundant: finding work, claiming benefits and managing debts – GOV.UK