When a new employee starts, you need a tax code for their first payday. A P45 from their last job gives you one. Without it, HMRC's starter checklist gives you the information instead. This post is for small UK employers taking on someone for the first time, and covers 2026/27.
What is the starter checklist?
It is the HMRC form a new employee fills in so you can work out their tax code for the first payday. GOV.UK describes it as the starter checklist, which replaced the P46. HMRC updated its guidance on 2 March 2026. There is an online version the employee completes and gives to you, and printable PDFs, including one for employees seconded to work in the UK from abroad.
Ask for it when the employee:
- is starting their first job, or their first job in the UK
- doesn't have a P45 from their last job
- has changed personal details since their last P45
- is coming back to work after a break, or moving from self-employment
- has more than one job
- has a student or postgraduate loan to tell you about
What the employee fills in
The employee gives their personal details and National Insurance number, the start date, details of any other employment since 6 April, any student or postgraduate loan plan, and one employee statement. The online form can't be saved part-way, so they need everything to hand. From your own records you also need their date of birth, gender, full address and start date.
HMRC's employer help card (updated 23 February 2026) asks you to enter full official names, including middle names, and only a verified National Insurance number: a blank is better than a guess. HMRC matches new starters on these details, so errors slow down the right tax code.
Statements A, B and C: which tax code to use
| Statement | Employee says | Tax code to use | Basis |
|---|---|---|---|
| A | This is my first job since 6 April, and I haven't had taxable Jobseeker's Allowance, Employment and Support Allowance, taxable Incapacity Benefit, or a State or workplace pension | 1257L (the 2026/27 emergency code) | Cumulative |
| B | This is now my only job, but since 6 April I've had another job or one of those taxable benefits; I don't get a State or workplace pension | 1257L | Week 1 / Month 1 |
| C | I have another job or get a State, workplace or private pension | BR | All pay taxed at 20% |
| No checklist and no P45 | — | 0T | Week 1 / Month 1, with starter declaration C |
Statement types and codes are from HMRC's PAYE Manual (PAYE61030), with the emergency code from HMRC's 2026/27 rates and thresholds for employers. Statement A is taxed cumulatively, so the full year's personal allowance builds up from 6 April. Statement B uses the same code on a week 1 or month 1 basis, so each payday gets one period's share of the allowance. HMRC's help card says not to use any code other than BR or 0T with starter declaration C.
Adding the new starter, step by step
- Ask for the P45. If there isn't one, send the employee the starter checklist before their first day; HMRC's help card asks you not to delay the start while waiting for a P45.
- Use the completed checklist, or HMRC's online tool, to work out the tax code and the starter declaration (A, B or C).
- Add the employee to your payroll software with the code, the declaration, any student loan plan and their personal details.
- Report them to HMRC on the Full Payment Submission on or before their first payday, with their start date.
- Keep the checklist with your payroll records for the current tax year plus the 3 following tax years.
- When HMRC sends a tax code notice for the employee, switch to that code from the next payday.
What if the checklist is late or never arrives?
If the employee can't complete the checklist and has no P45, HMRC's help card says to put them on starter declaration C with tax code 0T. HMRC's own manual applies 0T on a week 1 or month 1 basis when no statement is signed.
If the checklist arrives after the first payday, update the starter declaration in your payroll but keep the tax code from your first Full Payment Submission until HMRC sends a new one. If HMRC has already sent you a code, use that. Don't report a second start date on later submissions.
How it shows on the payslip
The payslip shows the tax code, often with W1, M1 or X after it when the code is on a week 1 or month 1 basis. A new starter on BR or 0T may pay more tax at first. Once HMRC sends the right code, any overpayment is usually put right through later payslips; our guide to emergency tax codes explains how.
Where PayDocs fits
PayDocs makes the payslip once you know the code. You enter the tax code, including any week 1 or month 1 basis, and the period's pay. PayDocs works out PAYE income tax, National Insurance and supported deductions for 2026/27 pay dates. Every line is editable so it matches what your payroll reported. PayDocs doesn't send Full Payment Submissions or work out the starter declaration for you.
This is general information about HMRC rules for the 2026/27 tax year, as published on 7 October 2026. It is not tax or legal advice.
Questions
What is a starter checklist?
HMRC's form for a new employee who doesn't have a P45. It replaced the P46. The employee's answers, especially statement A, B or C, tell the employer which tax code to use on the first payday.
Is the starter checklist the same as a P46?
Yes, in purpose. GOV.UK says the starter checklist replaced the P46. Employers still sometimes call it a P46, and HMRC's own manual still refers to P46 statement types A, B and C.
Which tax code does statement C give?
BR, so all pay from the job is taxed at the basic rate of 20%. HMRC's help card says not to use any code other than BR or 0T with starter declaration C.
What tax code do I use if the employee doesn't fill in the starter checklist?
Use starter declaration C with tax code 0T, on a week 1 or month 1 basis, until HMRC sends a tax code for the employee. Then switch to HMRC's code from the next payday.
How long do I keep a starter checklist?
Keep it with your payroll records for the current tax year plus the 3 following tax years, which is what GOV.UK requires for the employee information you collect when someone starts.
Sources
- GOV.UK: Starter checklist for PAYE (updated 2 March 2026)
- GOV.UK: Tell HMRC about a new employee
- GOV.UK: Tell HMRC about a new employee, get employee information
- GOV.UK: Tell HMRC about a new employee, late P45 or starter checklist
- HMRC PAYE Manual: PAYE61030, form P46 statement types
- GOV.UK: Employer help card, new starter information (updated 23 February 2026)
- GOV.UK: Rates and thresholds for employers 2026 to 2027
Sources checked 7 October 2026. This article explains how pay documents work; it is not tax or legal advice.
