HMRC Starter Checklist for New Employees
Hiring someone without a P45? Here's how to use HMRC's Starter Checklist to get them onto payroll with the right tax code.
What Is the Starter Checklist?
The HMRC Starter Checklist is the form you complete for any new employee who starts work and either has not worked in the current tax year or cannot give you a P45 from a previous employer. It collects the information your payroll software needs to set up the correct tax code and file the first Full Payment Submission (FPS) through Real Time Information (RTI).
As accountants in Brentwood running payroll for businesses across Essex, we complete the Starter Checklist process for every new hire on our payroll service — but if you run payroll yourself, here's what you need to know.
When You Must Use the Starter Checklist
No P45 provided
Your new employee can't supply a P45 from their previous employer — it may be lost, delayed, or this is their first job.
First job in the tax year
They have not worked at all since the tax year began on 6 April.
Coming back to work
They've been on benefits, studying, or out of the workforce and don't have a current P45.
Second or additional job
They already have another job and need a different tax code applied to this employment.
Ready to Complete the Starter Checklist?
Download the official HMRC Starter Checklist directly from GOV.UK to get your new employee onto payroll with the right tax code.
Get Started on GOV.UKHow to Complete the Starter Checklist
Download the form from GOV.UK
Get the latest Starter Checklist directly from gov.uk/guidance/starter-checklist-for-paye. It's free and updated each tax year.
Collect the employee's details
Full name, date of birth, gender, address, National Insurance number, and start date. Without these your FPS submission will fail or be filed incorrectly.
Choose the correct employee statement (A, B or C)
Statement A: this is their first job since 6 April and they have no other taxable income. Statement B: this is their only job but they've worked elsewhere this tax year. Statement C: they have another job or pension.
Capture student and postgraduate loan information
Tick the boxes for Plan 1, Plan 2, Plan 4, Plan 5 or postgraduate loans so deductions start at the right time.
Sign, date and store the form securely
Keep the completed form on the employee's HR file for at least 3 years after the end of the tax year — HMRC may ask to see it.
Enter the data into your payroll software
Your payroll system uses the statement to apply the right tax code (1257L W1/M1, BR, or another) and includes the new starter on your next FPS.
Which Tax Code Applies to Each Statement?
Statement A
Standard tax code (1257L for 2025/26) on a cumulative basis — full personal allowance applied.
Statement B
Standard tax code on a Week 1 / Month 1 (non-cumulative) basis until HMRC confirms the correct code.
Statement C
BR (Basic Rate) tax code — all earnings from this job taxed at 20% with no personal allowance.
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Common Questions
Do I need a Starter Checklist if my new employee gives me a P45?
No. If your new employee provides a valid P45 from their most recent job in the current tax year, that's all you need to set them up on payroll. The Starter Checklist is only required when no P45 is available.
What happens if I don't complete a Starter Checklist?
Without the right information, payroll software will apply an emergency tax code (often 0T), meaning the employee pays too much tax and you risk an incorrect FPS submission to HMRC. Always complete the form before running their first payroll.
Can the Starter Checklist be completed online?
Yes — HMRC provides a downloadable PDF and many payroll systems (including Xero, BrightPay and Sage) include a digital version the employee can fill in directly. The information is the same either way.
How long should I keep the completed Starter Checklist?
HMRC requires you to keep payroll records, including completed Starter Checklists, for at least 3 years after the end of the tax year they relate to.
Do I send the Starter Checklist to HMRC?
No — the form stays with you. The information is reported to HMRC via your first Full Payment Submission (FPS) for that employee through your payroll software.
Need help running payroll for new starters?
Our accountants in Brentwood handle Starter Checklists, RTI submissions, and payslips as part of our fixed-fee payroll service. See our payroll service or contact us.