The P45 It form is a crucial document for both employees and employers in the United Kingdom. It serves as a record of an employee's earnings and tax contributions when they leave a job. The form is divided into three parts, each designed for different parties involved in the employment process. Part 1 is submitted to HM Revenue & Customs (HMRC) by the employer, detailing the employee's PAYE reference, National Insurance number, and tax code at the time of leaving. It also includes information about any student loan deductions. Part 1A is given to the employee, who should keep it safe for future reference, especially for tax returns. The employee's total pay and tax contributions during their employment are also recorded here. Part 2 is intended for the new employer, who must complete it upon the employee's start date at their new job. This part ensures that the new employer has the necessary information to process the employee's tax correctly. Lastly, Part 3 is for the new employer to fill out and return to HMRC, confirming the details of the new employment. Understanding the P45 form is essential for ensuring compliance with tax regulations and for facilitating a smooth transition for employees between jobs.