What is a new employee starter checklist and who is it for?

Alisa Mistry -

The job descriptions are written and the recruitment ads are out — you’re ready to start welcoming your new team members! Or are you?

Onboarding new starters involves more paperwork than many first assume, including some important documents you need to stay compliant.

As an HR advisor at Charlie, I advise startups and small businesses on how to comply with UK employment law, so I understand how confusing all the paperwork and terminology can be. So this guide clearly explains everything involved in employing someone new so that you avoid making mistakes with legal repercussions.

We’ll go through the starter checklist (also known as the new employee starter form), and explain how it differs from a P45 and a P46. And we’ll put everything into context so you understand how the new starter forms in the UK apply to your own small business.

We’ll also look at how an HR software for small businesses like Charlie automates the entire onboarding process, including the starter checklist, removing all the hassle and guaranteeing compliance.

So whether you’ve just embarked on a hiring spree or are about to recruit your first paid employee, you can use this guide to work out exactly what you need (P46, P45 or starter checklist).

And if you’re in search of a starter checklist template to get you started, we recommend going straight to the gov.uk website – their free free new employee starter form template is the most reliable and up-to-date.

Now, as a first step, let’s start by getting to grips with the terminology…

What is a P45?

A P45 is the form an employee gets when they leave an employer to go and work somewhere else. It shows how much tax they've paid during the tax year so that their new employer can submit that information to HMRC.

What is a P46?

A P46 was previously used if a new employee didn't have a P45 from their last employer — i.e. someone starting their first job or returning to work after an extended break — to ensure they paid the correct amount of tax. 

The P46 has now been replaced with the starter checklist.

What's the difference between a P45 and P46?

A P45 is the form everyone gets when they leave a job. And a P46 was required if a new employee didn’t have a P45.

What is the difference between a P46 and a starter checklist?

A P46 form was only used for new employees who didn't have a P45. 

The new starter checklist can be used for all new employees, whether they have a P45 or not.

What is a new starter checklist form? (And is it the same as a P46?)

A starter checklist provides employers with the information they need to add a new employee to their payroll with the correct tax code. It used to be known as a P46.

The new starter checklist replaced the P46, but it can be confusing as both names are still widely used.

So:

  • A P45 is a document people get from their employer when they leave a job
  • A starter checklist (formerly a P46) is a document that must be completed when an employee starts a new job.

To reduce confusion, we’ll only refer to P45 or starter checklist from now on in this blog.

What is a P60?

A P60 outlines the tax and National Insurance contributions that an employee has paid over the previous tax year. P60 statements are issued every year.

When do you have to complete a starter checklist?

When a new team member comes onboard, employers need to fill out a starter checklist as soon as possible — taking care to enter all details correctly into the payroll system so that they pay the right tax.

What information do you need to complete a starter checklist?

Your new team member will need to have the following information to hand so that you can fill out their starter checklist (new employee starter form):

  • Address and postcode
  • Student or postgraduate loan plan type(s) (to check their plan type, employees need to sign into their student loans repayment account)
  • Passport number if they’re working in the UK temporarily
  • National Insurance number

They will also need to know about any income they’ve received that tax year from:

  • Another job
  • A pension
  • Employment and Support Allowance, Jobseeker’s Allowance or Incapacity Benefit.

Care must be taken to accurately record all of this information or your new employee could end up with the incorrect tax code.

Is it possible to automate starter checklists?

As a small business founder or CEO, you’re well used to juggling tasks, but starter checklists are one of those frustratingly time-consuming jobs because they’ve got to be right. 

Sloppy mistakes on a starter checklist will financially impact your new employee, and that’s something you really don’t want to happen. 

But as a small business person you’ll also be very familiar with:

  • A lack of time - you simply don’t have the time to do all the research you need to
  • A lack of HR knowledge - you’re worried you might miss something important or get something wrong
  • Concerns around HR compliance - you’re unsure if you’re doing everything in line with UK employment law.

For these reasons and more, many startups and small businesses are choosing to use HR tools to automate their starter checklists. 

HR software like Charlie simplifies the entire onboarding process, removes the chances of making an error, and guarantees compliance. 

In short, Charlie takes away all the worry and the faff! (Plus, it’s free to trial for 7 days.)

How does Charlie simplify the onboarding process?

Charlie simplifies and speeds up the onboarding process because it does everything for you.

Our HR software is built for small businesses, so it’s designed to meet all of your needs and can be customised to reflect your brand. 

Here’s how it works for onboarding and starter checklists:

  • Onboard with one-click: your employees submit all their own details
  • Employees ‘self-serve’: Charlie’s so simple and intuitive that there’s no need for supervision or training
  • Legally-compliant: Charlie ticks every box so you have total peace of mind
  • No more copy-and-paste: everything’s entered and stored within the system.

With Charlie, your new employees get a warm and professional welcome where it’s easy for them and easy for you. 

And as every small business is unique, Charlie also lets you build a customised onboarding flow if you want. You only have to set it up once, and then it’s there for every new employee.

With software like Charlie, you’ll save hours of onboarding admin with every new person, giving you the chance to focus on what matters — like welcoming them to the team.  Plus, you have the peace of mind of always being on the right side of the law. 

Easy onboarding with Charlie

Onboarding in Charlie works like this:

  • As soon as a new team member signs their employment contract, you add them to Charlie with their name and email address
  • They’ll then receive a welcome email and can log in
  • From here, your employee can easily and quickly add their details to Charlie themselves — i.e ‘self-service onboarding’.

Your new employee is responsible for inputting their:

  • National Insurance number
  • P45 or starter checklist
  • Home address
  • Date of birth
  • Gender
  • Preferred pronouns
  • Marital status
  • Contact information
  • Next of kin information
  • Passport number
  • Bank account details for payroll

All of this information is automatically saved in Charlie to be used for payroll and tax purposes. It’s safely stored and only visible to the people you’ve set permissions for, ensuring total confidentiality.

As the employer, you can follow every new team member’s progress through Charlie’s automated onboarding checklists. And managers and new employees receive email reminders to ensure all paperwork is completed before the set deadline.

Onboarding doesn’t have to be a headache! Charlie takes the faff out of starter checklists and is a complete HR solution for startups and small businesses.