When you are employed, there are so many different forms you need that it can be confusing to understand which form is for which purpose. This guide will inform you about form P60 and it’s purpose.
What is a P60?
A P60 shows the amount of tax that you have paid on your salary in the last tax year (6 to 5th April). If you are working for your employer on the 5th April, they must issue you with a P60. They must provide this by the 31st May, either on paper or electronically.
You may need it for:
- Claiming back overpaid tax.
- Applying for tax credits.
- Proof of your income when attempting to get a loan or mortgage.
Once the previous tax year is completed, your employer’s payroll department will gather the details of the money that you have been paid over the course of the year as well as information on tax and National Insurance contributions, pension contributions and your final tax code- presented to you in an official document, known as the P60.
The P60 is not of any particular use to a new employer, unlike the P45.
Although it may be possible for your employer to replace a lost P60, this is not always the case and as such, you should keep it safe.
How to get a P60 for your employees:
If your payroll software does not automatically produce P60s, you can order copies directly from HMRC via the website.
Further information about form P60
It is very important that you don’t destroy P60 forms which are issued to you, as they form an important part of vital proof that tax has been paid.
Employees who leave before the end of the tax year will not be issued with a P60 from their employer, as the same information about income and tax can be found on their P45.