The Income Tax (Pay As You Earn) Regulations 2003

Form P45 for previous tax year: employment starting on or before 24th May

44.—(1) The new employer must—

(a) record in the deductions working sheet the code shown in Parts 2 and 3 of Form P45 as the employee’s code, and

(b) deduct or repay tax by reference to that code on the cumulative basis, subject to regulation 32 (higher rate code: deductions).

(2) The receipt by the employer of Parts 2 and 3 of Form P45 is treated as the issue by the Inland Revenue of the code shown in Parts 2 and 3 of Form P45 as the code for use in respect of the employee.