What is the HMRC new starter checklist?

The HMRC new starter checklist is a form new joiners fill out when they start a job in the UK. “It helps employers operate the correct tax code against a team member’s income, and minimizes the risk of under or overpayments,” says Suzanne Goodier-Dodson, Payroll Manager at The Accountability Partnership. Employers use the information to add the new joiner to their payroll software and notify HMRC ahead of their first payment.

What is a new starter checklist for?

Companies use the HMRC new starter checklist to collect information from new joiners in the UK so they can set them up on payroll. It helps you apply the right tax code to your people’s earnings and minimize the risk of under or overpaying tax.

Does a P45 replace the starter checklist?

Not always. You can use a P45—the form a previous employer gives someone showing their pay and tax details—when onboarding a new starter as long as it’s available and still applies. But if a new joiner doesn’t have a P45, or the details are no longer relevant (for example, after a long break from work), you use the starter checklist instead (formerly the P46).

Is HMRC’s starter checklist a P46?

No, the HMRC new starter checklist isn’t a P46—but it does serve as its replacement. The starter checklist is now the official form to determine a new joiner’s tax code, even though many people still refer to it by the old name.

Does a new starter checklist prevent an emergency tax code application?

No, a new starter checklist doesn’t prevent the application of an emergency tax rate. In certain situations, even if someone has completed a starter checklist, an employer may apply an emergency tax code to their salary. For example, HMRC doesn’t always deliver a new joiner’s tax information before their first day. If that happens, you apply an emergency tax code until HMRC sends you the correct one.

What does an employer do without a new starter checklist?

In the absence of a starter checklist or a P45, place new joiners on starter declaration code C and use tax code 0T.

Is the HMRC new starter checklist mandatory?

HMRC doesn’t describe the starter checklist as mandatory explicitly, but it’s considered the standard way to set up new joiners on payroll and report details through RTI. It lets you set the correct tax code from day one instead of applying an emergency code and correcting payroll later.