What is a P60 form?
A P60 form, or "End of Year Certificate," is an annual statement that provides you with a summary of your earnings, tax deductions, and National Insurance contributions (NICs) for the previous tax year.
When do you receive a P60?
Every employer is legally obliged to provide their employees with a P60 form within 45 days after the end of the tax year, which means you should receive it by 31st May. If you haven't received it by then, make sure you ask for it.
Do you get a P60 if you're self-employed?
As a self-employed individual, you don't receive a P60 form because you don't have an employer or pension provider to issue one. Instead, you must keep track of your income and expenses throughout the year and report them on your Self Assessment tax return.
Why is a P60 important?
A P60 form serves multiple purposes, including:
Proof of income: Your P60 provides a detailed summary of your income during the tax year, making it useful for applications such as mortgages, loans, and rental agreements
Tax reconciliation: It helps you verify the amount of income tax and National Insurance contributions deducted from your salary, making sure that you've paid the right amount. It can also help when claiming any tax overpayments or rebates you might be entitled to
Record-keeping: A P60 helps you keep accurate records of your financial history, which can be beneficial for tax planning or in the event of an audit by HMRC
Tax returns: If you need to file a Self Assessment tax return, your P60 serves as an essential source of information regarding your employment income, tax deductions, and NICs
Benefits claims: Some government benefits require you to provide your P60 as proof of your income, helping to determine your eligibility
It's essential to store your P60 forms in a safe place, as they serve as important records of your financial history.
How to get a copy of your P60
Your employer or pension provider is responsible for issuing your P60 form each year.
If you haven't received your P60 by 31st May
Contact your employer: Your employer's payroll or HR department should be able to provide you with a copy of your P60, either physically or digitally
Request a replacement P60: If your employer can't provide a copy of your P60, or has gone out of business, you can request a replacement from HMRC. This process can take time, so it's best to act as soon as possible if you need a replacement
Understanding your P60 form
When you receive your P60, make sure you review its contents carefully. The form will include the following details:
Your personal information: This includes your name, address, National Insurance number, and tax code
Employment income: The total amount of your earnings before tax and National Insurance contributions
Taxable income: The portion of your income that's subject to income tax, which may be lower than your total earnings due to tax allowances or reliefs
Income tax deducted: The total amount of income tax deducted from your salary throughout the tax year
National Insurance contributions deducted: The total amount of National Insurance contributions deducted from your salary during the tax year
Additional details: Other information on your P60 may include student loan deductions, statutory maternity pay, or statutory paternity pay, among others. Make sure all of these details are accurate and up-to-date
What's the difference between a P45 and a P60?
A P45 is different from a P60 form. A P60 is an end-of-year summary of your income, tax deductions, and National Insurance contributions for a specific tax year. A P45, on the other hand, is a document you receive when you leave a job. It provides details about your income and tax deductions up to the point of leaving that job. You'll need to give your P45 to your new employer to ensure you're taxed correctly in your new position.
P60 FAQs
What if my P60 isn’t correct?
If you find any discrepancies or errors in your personal information, income or deductions, inform your employer immediately. They're responsible for correcting any mistakes and providing you with an updated P60.
I was given multiple P60s
If you have more than one job, you may receive multiple P60s. Each of your employers will have to provide you with a P60. Keep them all for your records, as each one will reflect the income and deductions for each job.
Can I get a P60 for previous years?
If you need a P60 for a previous tax year, first contact your employer. If they can't provide a copy, request a replacement from HMRC. Note that HMRC can only provide a replacement P60 for the past 6 tax years.
Wrapping up
Understanding your P60 form is an important part of managing your personal finances and tax obligations. Make sure that you review your P60 thoroughly, store it safely and quickly address any issues or discrepancies. By doing so, you'll maintain accurate financial records and be well-prepared for any future tax or financial matters.
Image from Unsplash published by charlesdeluvio
