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Tax and National Insurance for PAYE Agency Workers

  • Publish Date: Posted over 4 years ago
  • Author: Emma Dadswell

Do you need my P45?

To ensure that your tax code and tax deductions are accurate you should supply us with a P45 issued by your previous employer as soon as possible. A P45 is a running statement of pay and tax deducted in any financial year which runs from 6th April of one year and ends on the 5th April the next.

If you do not have a P45 please complete and return a Starters Checklist form.

How much TAX will I pay each week?

Your tax deduction depends on your tax code - found on your P45. If you have a P45 from your previous employer you must send it to handle immediately.

If you do not have a P45 from your previous employer handle will provide you with a HMRC Starter Checklist to sign. You will need to declare your working status by ticking one of three statements which will determine which tax code handle must apply. This form is then sent to HM Revenue and Customs to update your work history. They will also contact us if your tax code changes.

If you do not have a P45 and do not complete a HMRC Starter Checklist you will be placed on the tax code OT, which means that you will pay tax on all of your earnings.

This will probably result in you paying more tax than you need to.

Further information on this subject can be found at www.hmrc.gov.uk

I think I am paying too much TAX what should I do?

You can contact the Payroll team at handle and we can check your records and offer advice. Alternatively you can contact the Tax Office Employees’ Helpline on Tel: 0845 300 0627. You will need to have handle’s PAYE reference number and your National Insurance number handy, as the tax office uses this as a reference number for you.

NI Number – I do not have one, how does this affect my pay?

Not having a National Insurance number has no effect on the statutory deductions taken from your salary each week. Both tax and National Insurance contributions will be deducted.

The effect of not having an NI number is that the deductions taken from your salary will not find their way to your National Insurance record, as your number is your own unique identification. This could affect your statutory benefits e.g.  Jobseeker’s Allowance, Maternity Allowance, State Pension etc.

You must therefore make every effort to obtain an NI number and notify us as soon as possible. Even if you are no longer temping for us when you receive your NI number it is still in your interest to let us have it.

To obtain a National Insurance number if you do not have one call the Jobcentre Plus application line on: 0345 600 0643.

If you already have a National Insurance number and lost it, you should fill in form CA5403 or contact the helpline.