Leaving employment to run your company
Actions to take after leaving an employer to run your company
If you were employed before setting up your company, there are a few important actions to take when you leave.
Your P45
Ask your former employer for a P45 when you leave. This shows your pay and tax to the date of leaving. Give it to us immediately. We enter the year-to-date figures into your company payroll, so your director salary is taxed correctly for the remainder of the year. Without the P45, an emergency tax code applies and may over-deduct tax.
Your pension
Your pension from previous employment belongs to you. It remains invested and you can transfer it to a SIPP (Self-Invested Personal Pension) if you wish. Your new company can then make employer contributions to your pension from day one, continuing your retirement savings through a more tax-efficient route.
💡 Good to know: Leave your employment on a date that works best from a tax perspective. We can advise on the optimal timing if you give us advance notice of your planned leaving date. Leaving mid-tax-year requires care around your tax code and National Insurance record.
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