P45 Tax
Categories: Tax
In the U.S., you’ll sometimes hear people talk about getting a pink slip. It’s a term that means getting fired. The pink slip is official notification from your work that it’s time for you to hit the bricks. (Pink slip is just a name. It doesn’t have to be pink, and you might not get a slip at all. You might just get yelled at and shown the door by security.)
The U.K. has its version of this. It’s called a P45. However, in the U.K., the form is much more official. It actually serves as a cross between a pink slip and a W2.
The P45 contains information about the employee's tax contribution. It shows things like withholdings for things like income tax or National Insurance Contributions. Hence, the name P45 tax.
