what is p45 This is a topic that many people are looking for. is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, would like to introduce to you My P45 – EXPLAINED. Following along are instructions in the video below:

“This is julius from basic financials. This video is going to be about your fon fon p45. Now unfortunately. Sometimes this means you might have lost your job you might left your job.

I m gonna code or you might have lost it because you ve been sacked oh no and but either way you get a p45 when you leave somebody s employment. So p45 and its multi part forms as a full platform and the first part is for you to keep and and the other three parts are for you to pass to a new employer. Once you have started another job now we ll come back to that but that s very important so don t don t just file it away somewhere. And do a file it away you ll pick up part one because that tells you the information you might need for your tax return.

If for example you don t get another job before the end of the tax year and when you get a p45 from an employer they won t give you a p60 at the end of the year. The p60 if you have seen any of my other videos p60 is what you get from your employer at the end of the tax year to show you a summary of your your income gross pay your tax deducted and also shows the national insurance contributions on there. But if you ve not if you re not with that employer lenden here even though they ve paid you for that year they won t give you a p60 because all they re going to give you is that p45 that p45 will show on it the employer reference. The employer address your reference in your address.

It will show the data of leaving and it will show your gross pay up to that point of leaving and your tax deducted up to that point of leaving. Now this p 45. Could be very important say for example you leave halfway through the and and you don t get another job for six months. And that coincides say you leave in roundabout.

September. And you you haven t got another job by the fifth of april. Now you will have only received six months worth of your allowances because because some the tax system works on a cumulative basis your personal allowance which at the moment is twelve and a half thousand pounds you would only have received half of that so six thousand two hundred and fifty pounds now that means if you haven t had any other income during the year and you would be entitled to another six thousand two hundred and fifty personal allowance rest rest of your allowance for the whole year..


So you would be entitled to a refund and you would use that p45 to send to the tax office. There s evidence of what your income is the tax being has been deducted and that would get you a refund. So that s one reason to keep hold of your p45 and now the other reason is as i said before when if you do start a new employment. You should give part two three and four to your new employer and that will allow them to plug those figures of gross pay the date and the in tax deducted to date into their payroll system.

And that that will ensure that the paint will continue to work on a cumulative basis. So that what what their their system will look at what your gross pay from their employment. Plus your previous employment is what your tax up to date should be when it was to date and then if necessary they ll give you a refund within your pay. So for example.

Say you had one or two months. Wait you didn t have a job you would have missed one or two months worth of allowances personal allowances. But because you ve given your new employer information from that p45 and that will give you that will give them the amount that they need for their payroll system to work out your refund during the year. So you then shouldn t need to go i m a refund from the tax office at the end of the year and in those circumstances.

Where you ve given you a new employer. A p45 your p60 end of you pay summary will show that the figures from previous employment. The p45 and it will show the figure for this employment. The new employer which will give a total for the year.

So your totals. P60 will be pay for that employment. Plus..


The previous employment as per. The p45 and well the other reason for giving your new employer p45 is so they can then give you the correct tax code. Because that p45 will also show the tax code that was being used it will say that you ve had any student loan deductions whether that needs to continue so there s a whole bunch of information on that p45. Which is very useful for the new employer and i m sure that you get the correct tax code going forward or at least correct as it was that if assuming early it was correct in the first place video.

They ll continue to use their tax code. And they won t need to use emergency codes and and things which might end up giving you the wrong amount of gross out of tax paid at the end of the year then i think that s probably it so that helps a bit with your explaining your p45 and if you have got one. And you want to get a new job good luck with finding a new job if you don t but enjoy your retirement or whatever. It is you ve decided to do and yeah.

Like and subscribe. If you got any comments just leave them in the space below any questions as well and i ll see you again soon. wo are the time series regression moments. And that s the cross sectional regression moments that we re going to define the lambda that s one of our parameters.

By the cross sectional regression. Here beta. Prime expected return equals beta. Prime beta lambda.

That s the ols regression that defines lambda. So we ve got our eight. We ve got our gt and now it s just a pleasant hour of working out algebra to get the olt gmm formulas for standard errors..


And the test statistic as usual when we do gmm approaches to ordinary least squares regression. If you assume iid normal errors. It reduces to the classic formulas. And it just becomes a clean easy way of deriving.

The classic formulas. So here for example is the classic formula for the standard error of the lambda and the covariance of the alphas. They look horrible. But they re not that bad wait a minute standard errors.

There s x prime. X. Inverse. X.

Prime. Omega x. X. Prime.

X. Inverse. That s just our usual formula for the standard error of ols regression x..


. When they ve correlated errors this thing here is called the shangkun correction. It corrects for the fact that the betas are estimated in the same sample. The generated regressor and there s our friend sigma over rho t.

Which of course belongs in a in a in a factor. Risk premium standard error same with the covariance of the alpha sits. It s a standard formula. It s the sort of awful formulas.

That always come out of econometrics. You don t have to know it you have to know where to look it up with covariances of the alphas. Then we re ready to do the test is the alpha covariance inverse times alpha. That s going to have an asymptotic chi squared distribution under iid normal that turns into an f distribution or again bootstrapping.

So cross sectional regression. The method. What we re doing how we got our estimates and then formulas for standard errors. And test statistics that take care of the econometric problems with these regressions.

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