P60

What is a P60 used for?

A P60 End of Year Certificate serves multiple purposes:

• Proof of income

• A record of the amount of tax an employee paid during the year

• Proof of how much tax was deducted for employees seeking tax rebates after overpaying

• A supporting document when filing a self-assessment tax return

Employers issue P60s to their employees each year. This important document can be used to prove income when applying for loans, mortgages, or other financial purposes, or for claiming a tax refund, or applying for tax credits.

Where do employees get their P60?

Employees receive their P60 from their current employer at the end of the financial year. They can also access their P60 information online via their HM Revenue and Customs (HMRC) personal tax account. Employers are required by law to provide this document.

When do employees get their P60?

Employees typically receive their P60 after the end of the tax year, which runs from April 6 to April 5 of the following year. Employers are required to issue the P60 no later than 31st May following the end of the tax year, which gives employees enough time to handle their tax affairs.

Where do employers get P60s to give their employees?

Employers can use payroll software to quickly and easily generate P60 forms—as well as payslips and other tax documents—for their employees. Most modern payroll systems automatically generate P60s for all employees at the end of the tax year. Employers may also access P60 templates through HMRC or third-party PAYE tools if needed.

What information is on a P60 form?

A P60 form contains crucial details about an employee's earnings and the taxes paid during the year. It includes:

• The employee’s personal details, including their name, tax code, payroll number, and National Insurance number

• The employee’s gross earnings, take-home pay, and income tax paid

• If the employee changed jobs during the tax year, their gross earnings and tax paid for both jobs

• The employee’s National Insurance contributions

• Any statutory payments the employee received, such as maternity pay (or paternity pay) or statutory sick pay

• Student loan repayments the employee made (or any other untaxed loan deductions, if applicable)

What should an employer do if they make a mistake on a P60?

If an employer makes a mistake on a P60, they or their payroll department can issue a new copy of the form with the error(s) corrected. But the employee should also carefully examine the P60 and contact HMRC to notify them of the mistake. That way, HMRC can provide guidance and make sure the employee’s tax records are updated across the board.

What happens if an employee loses their P60?

If an employee loses their P60, they should first request a replacement from their employer, who may be able to issue a copy. However, employers are not legally required to provide duplicates. Alternatively, employees can view their P60 information through their HMRC personal tax account.

Frequently asked questions about P60s

Is a P60 different from a P45?

Yes. A P60 is issued at the end of the tax year and reflects the total tax paid, while a P45 form is given to an employee who is leaving their job. It shows the tax paid up to their leaving date with their previous employer and helps their new employer set up their payroll with the correct tax information.

Do self-employed workers get P60s?

Usually, no. Self-employed workers, also known as independent contractors or sole traders, are responsible for completing their own tax returns and are not issued a P60 by any employer. The exception is those who operate a limited company and pay themselves a salary. In that case, they should generate a P60 for themselves at the end of the tax year.

Do retirees get P60s?

P60s keep a record of taxable income, so if a retiree receives money from their pension contributions that’s taxable in their retirement, they’ll still receive a P60. In this case, though, they’ll generally receive the P60 from their pension provider, not an employer.

What happens if an employer doesn’t issue a P60 to an employee?

If an employer fails to issue a P60, the employee should contact the employer and request one. If the issue persists, the employee can report it to HMRC. Providing a P60 is a legal obligation for employers, and failure to deliver the forms to your employees on time may lead to fines from HMRC—£300 initially when P60s are issued late, with £60 added every day until employees receive their tax documents.

What is a Starter Checklist?

A Starter Checklist is used by a new employer to gather key tax information when someone starts a new job. It helps determine the correct tax code to apply and is used when a P45 is not available.