P45 Problems. Advice needed

icedbullet · 15 Oct 2010 at 09:52

Hey all

After over a year of searching for a job, I finally found one! However, the place I work at now wants a P45 from my previous employer. I don't have one because the last place I worked at was as a contractor, not as a full time employee, yet stupidly on my application form I used the word employed and wasn't clear about being a self-employed contractor.

I'm expected to get back to them today, what should I say to them so I don't look like a complete moron?

Gilly · 15 Oct 2010 at 09:54

The truth, and hope they still want you

alex_tank · 15 Oct 2010 at 09:56

P46 I guess

UnworthyBean · 15 Oct 2010 at 09:57

I thought P45's weren't valid over a year old?

alex_tank · 15 Oct 2010 at 09:58

Say you lost it and you need a P46. Or just tell them, as if it's that important.

Wyrdo · 15 Oct 2010 at 09:59

Just do a P46

icedbullet · 15 Oct 2010 at 10:01

I am going to tell them I was self-employed. I don't see how it could be an issue (with the exception of making me look stupid). Is there anything I need to give them to show I was self-employed (instead of the P45) or would they just have to give me a P46?

Swifty55 · 15 Oct 2010 at 10:11

You should still get P45's if you're Self Employed.

Just state that you've lost your P45 and ask for a P46.

Eddie · 15 Oct 2010 at 10:13

Am I the only one to come in here thinking this was about a dodgy motherboard?

Vonhelmet · 15 Oct 2010 at 10:55

Swifty55 said:
You should still get P45's if you're Self Employed.

No you shouldn't :confused:

Tell them you were self employed.

Pawnless Endgame · 15 Oct 2010 at 11:02

When you go off JSA, you will get this year's P45 sent in the post. Being on the dole for a year means that some of it will count as taxable social security benefits. I went off JSA at the end of September and my P45 arrived from the DWP about a week later. I would probably wait for that.

Swifty55 · 15 Oct 2010 at 11:33

vonhelmet said:
No you shouldn't

Tell them you were self employed.

Yes you should.

How else are you going to do your self assessments?

RaohNS · 15 Oct 2010 at 11:42

Contact your local Jobcentre plus they will be able to give you advice on this

Swifty55 · 15 Oct 2010 at 11:42

You will receive a P45 once you sign off JSA.

Vonhelmet · 15 Oct 2010 at 11:49

Swifty55 said:
Yes you should.

How else are you going to do your self assessments?

P45s, P60s, P11Ds, etc are issued to employees. A contracting party is not obliged in any way to give a contractor one, and it would be something of a nonsense anyway as there'd be no deductions for tax or NIC anyway.

For self assessment, you keep your invoices.

Vonhelmet · 15 Oct 2010 at 11:50

Swifty55 said:
You will receive a P45 once you sign off JSA.

Now that part is correct.

Swifty55 · 15 Oct 2010 at 11:59

vonhelmet said:
P45s, P60s, P11Ds, etc are issued to employees. A contracting party is not obliged in any way to give a contractor one, and it would be something of a nonsense anyway as there'd be no deductions for tax or NIC anyway.

For self assessment, you keep your invoices.

Considering 4 years worth of self contracting with numerous P45s and 4 self assessments. I beg to differ.

Vonhelmet · 15 Oct 2010 at 12:13

Swifty55 said:
Considering 4 years worth of self contracting with numerous P45s and 4 self assessments. I beg to differ.

And what exactly was on the P45s? Did they take any deductions?

Just because they issued you with a P45, doesn't mean there was any reason to do so. They may have had you on the payroll, such that one was generated, but with some kind of no-tax code on there.

Swifty55 · 15 Oct 2010 at 12:26

As P45s state. Total pay to date and total tax to date.

Tax is BR (20%) regardless for self employed on my slips anyway.

Granted there's several ways you can be contracted, but out of every company I've worked for, I've always received a P45 after each contract.

Ring Peace · 15 Oct 2010 at 12:46

Irrespective of what people have received in the past, if you are self employed you are not on the PAYE scheme which means you should not be receiving P45's.

I don't really know what you lot call being a "contractor", HMRC are cracking down on people that are self employed but work as though they are employees, they don't like being ripped off the 12.8% employer NIC.

Find out if you are an employee or not here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_4015975 h

This is the clause they are hot on atm "are free to hire other people to do the work for you or help you at your own expense" if you are not freely allowed to substitute someone else in your place HMRC can decide you are employed.