Avoid carrying forward incorrect figures when entering a P45 from a previous tax year in UK Payroll.
When an employee provides a P45, always check the leaving date shown on the form.
If the termination date falls in the previous tax year (ending 5 April), do not enter:
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Pay to date
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Tax to date
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Any prior-year cumulative figures
Each UK tax year resets on 6 April, so previous year-to-date totals must not be carried forward into the new tax year.
You can use the tax code shown on the P45, as long as:
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It’s still valid for the current tax year (and hasn’t been replaced by a tax code notification), and
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It’s applied correctly (for example, cumulative or Week 1/Month 1, as indicated).
If the P45 relates to a tax year that has already ended, start pay and tax from zero, and only carry forward the tax code where appropriate.
This prevents incorrect cumulative tax calculations and avoids HMRC reporting issues.
If you’ve already entered P45 details from a previous tax year by mistake, you can correct this:
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Go to the employee’s record.
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Open the Tax tab.
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Remove the to-date figures that were entered.
You can do this even if a new tax code notification has been received.