What is a P60?
A P60 is a statement that shows how much income your employer has paid you in the tax year (which runs from 6 April to 5 April). It also tells you how much tax you paid that year, and what your National Insurance contributions were.
What information is on a P60?
Your P60 form contains personal details including your name, payroll number and National Insurance (NI) number.
It also has information about your pay and income tax, broken down into sections:
- Total pay for the tax year
- Total tax deducted that year
- Your National Insurance contributions for the year
- Total pay from any previous employment
- Total tax deducted from any previous employment
If relevant, your P60 form also has details of Statutory Sick Pay and Maternity Pay, as well as Student Loan repayments. You’ll find your final tax code for the year on it too.
What is a P60 used for?
Your P60 is a record of both your income and how much tax you have paid. There might be times when you need your P60 as proof of these, such as:
- Applying for a loan or mortgage
- Applying for anything means-tested, like tax credits
- Claiming a tax refund
- Filling out a self assessment for HMRC
How do I get a P60?
You shouldn’t have to worry about getting a P60 as it's your employer’s responsibility to give you one. If you are employed on 5 April, your employer must issue you with a P60 for that tax year. You should receive it on or after 5 April, and no later than 31 May. If you don’t have a P60 by this date, let your employer know.
You get a P60 from each current employer, so if you have two jobs you’ll get two P60 forms. If you work through an umbrella company your P60 will come directly from them. If you leave a job before the end of the tax year you won’t get a P60 from that employer, but you’ll get a P45 when you leave instead.
Your employer will issue your P60 either in paper or electronic format. Keep it safe, but if you lose it, you can see the information on it in your HMRC personal tax account.
What if my P60 is wrong?
Check your P60 carefully to make sure everything on it is accurate. If you’ve paid too little tax you could be liable for penalties from HMRC, especially if you use the information on your P60 to complete your self-assessment tax return. If you’ve paid too much tax you might be due a tax refund. If anything looks wrong, let your employer know so they can issue an amended P60.
Do I need a P60 for my self assessment tax return?
If you have some PAYE income but are also self employed, you’ll need a P60 from your PAYE job to complete your self-assessment tax return. You’ll also need any P45s you received from employment in that tax year.
How are self assessment tax returns changing?
As part of the Government’s plan to digitalise the UK tax system, self assessment tax returns are changing. Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) comes into effect in April 2024. From then landlords and self-employed people earning over £10,000 will need to use MTD-compatible software to complete their self assessment tax return. As part of MTD for ITSA you’ll need to keep digital records, send HMRC quarterly updates, an End of Period Statement (EOPS) and a Final Declaration.
By the time self assessment goes digital in April 2024 you will need to have MTD-compatible software in place to keep digital records and submit returns to HMRC. Adopting cloud-based accounting software like Xero before the change can help the transition go smoothly.
P60s for Employers
If you’re an employer, you must give all employees on your payroll a P60 at the end of every tax year. This is issued on or after 5 April, and no later than 31 May.
Who gets a P60?
Give a P60 to all employees on your payroll who are working for you on the last day of the tax year (5 April). If you run a limited company and draw a salary you’ll need to issue yourself a P60.
How do I issue a P60?
Your payroll software will generate a P60 for each employee after the final payroll period of the tax year. You can give this to them in paper or electronic form. If you’re exempt from filing your payroll online you can order P60 copies from HMRC. As well as giving a P60 form to your employee, you also need to send a copy to HMRC. This must be done electronically, unless you are exempt.
What if there is a mistake on a P60?
If you notice an error on a P60, or your employee tells you something is wrong, you need to correct it and issue a replacement. Mark the new P60 clearly with ‘replacement’ or send a letter confirming the changes.
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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