End an employee’s employment

When an employee leaves, you’ll need to enter their end date in Xero, make a final payment to them including all holiday pay, notify HMRC that their employment has ended, and give the employee a P45.

Add the employee's end date

  1. In the Payroll menu, select Employees.
  2. Click the employee to open their details.
  3. Click the Employment tab and click End Employment.

    End employment

  4. Select the employee's last day, and then click End Employment.
  5. Click End Employment to confirm.

Pay an employee their final payment

The best way to process an employee's final pay depends on how much leave they have remaining on their final day.

Download a P45 form to give your employee

Once you've posted the pay run with the employee's final pay, you can download their P45 form.

  1. In the Payroll menu, select Employees.
  2. If the employee's end date has passed, click the History tab.
  3. Click the employee to open their details.
  4. Click the Employment tab.
  5. Click download their P45.

    Image showing download link.