HM Revenue and Customs Starter Checklist Explained for Employers

The HM Revenue and Customs Starter Checklist, or HMRC starter checklist for short, is a form new employees without a P45 must complete.

 Previously known as the P46, it’s one of the key employment forms for new employees which should be included as part of the onboarding phase. Ensuring this 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.

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

What is the HM revenue starter checklist?

Simply put, the HM Revenue and Customs (HMRC) starter checklist collects vital information that HMRC needs 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 starter checklist used to be known as the P46 or P46 starter checklist. While the purpose remains the same - to collect information from 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 be 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 from HMRC’s website. This makes it accessible and easy to distribute to new hires who need it.

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. It will guide your employee through a series of questions about their previous employment and 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:

✅ some personal details, like their name, full address and 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, as well as:

• a pension or from Jobseeker’s Allowance

• Employment and Support Allowance or 

• Incapacity Benefit

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. 

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

Helping employees pick the right statement 

When they complete 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 situation:

What if I don'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 process their payroll 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.

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 employment laws.

Streamline your onboarding process with PayFit 

Whether you're dealing with the complexities of P11Ds or navigating PAYE, PayFit has the tools and insights you need to manage your payroll efficiently. Remember, while the HM Revenue Starter Checklist is a critical document for new starters without a P45, PayFit's software ensures that its integration into your payroll system is seamless and straightforward.

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 from day one. 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 new hires process, ensuring compliance and accuracy in payroll.