If you're an employee or pensioner in the UK, you may have come across the term "P60" in your tax affairs. This document serves as a critical record for your annual earnings and tax deductions. Our comprehensive guide will explain what a P60 form is, why it matters, and how to obtain a copy if needed.
What is a P60 Form?
A P60 form, or "End of Year Certificate," is a document that provides you with a summary of your earnings, tax deductions, and National Insurance contributions (NICs) for a specific tax year (running from 6th April to 5th April the following year).
If you're an employee or receive a pension in the UK, your employer or pension provider is legally obliged to provide you with a P60 form within 45 days after the end of the tax year, which means you should receive it by 31st May.
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 NICs deducted from your salary, ensuring that you have paid the correct amount. It can also aid in claiming any tax overpayments or rebates you may be entitled to.
- Record-keeping: a P60 enables you to maintain accurate records of your financial history, which can be beneficial for tax planning or in the event of an audit by HM Revenue and Customs (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. Keep them for at least 22 months from the end of the tax year to which they relate. This duration is necessary because HMRC may investigate your tax affairs up to 20 months after the end of the tax year in question.
Can I get a P60 if I'm 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.
How to Get a Copy of Your P60
Your employer or pension provider is responsible for issuing your P60 form each year.
With Onfolk, your P60 is automatically sent to you every year to your email address - no need to request it from your employer.
What if I haven't received my P60 by 31st May?
- Contact your employer or pension provider: your employer's payroll or HR department should be able to provide you with a copy of your P60, in physical or digital version.
- Request a replacement P60: If your employer or pension provider cannot 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 to review its conten 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 NICs.
- Taxable income: The portion of your income 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 withheld from your salary throughout the tax year.
- NICs deducted: The total amount of NICs 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. Ensure that all these details are accurate and up-to-date.
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 NICs 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.
Common P60-related Issues and How to Resolve Them
What if my P60 isn’t correct?
If you find any discrepancies or errors in your personal information, income, or deductions, inform your employer or pension provider immediately. They are responsible for correcting any mistakes and providing you with an updated P60.
What do I do if I’ve lost or damaged my P60?
If you've misplaced or damaged your P60, request a new copy from your employer or pension provider. If they cannot provide one, contact HMRC to request a replacement.
I was given multiple P60s
If you have more than one job or pension provider, you may receive multiple P60s. Each employer for whom you’ll have worked in the tax year 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 respective employment or pension source.
I’ve not yet been given a P60 or my P60 is late
If you haven't received your P60 by 31st May, contact your employer or pension provider to inquire about the delay. They are legally obligated to provide you with your P60 within 45 days of the tax year's end.
Can I get a P60 for previous years?
If you need a P60 for a previous tax year, first contact your employer or pension provider. If they cannot provide a copy, request a replacement from HMRC. Note that HMRC can only provide a replacement P60 for the past six tax years.
Understanding your P60 form is crucial to managing your personal finances and tax obligations effectively. Ensure that you review your P60 thoroughly, store it safely, and promptly 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.
Onfolk Makes Managing Payroll and HR Simple and Stress-Free
The benefit of combined payroll and HR software is that you save a ton of time on administrative tasks related to running your business while saving money on expensive accountants and HR consultants.
Onfolk is a modern, cloud-based platform built for startup founders and business owners employing a diverse team. Our platform combines HR software with almost fully automated payroll, so all your employee and pay data is in one place, accessible at all times.
As your employee data syncs automatically with your payroll, it takes just 3 minutes every month to run. This also means you only need to keep one system updated, ensuring your employee data and payroll are always free of discrepancies.
On top of being simple and fast to use, Onfolk provides you with other tools key to building your team effortlessly: a time-off management tool, 2-click employee onboarding and offboarding, customisable task lists, integrations with Xero, Quickbooks and your pension provider, fully customisable people metric dashboards and reports, and so much more.
If you use Slack to communicate with your team, Onfolk integrates with Slack too - get reminders for employee birthdays and anniversaries, as well as who is joining soon or on holiday that week.
Running a business comes with many responsibilities - Onfolk takes care of payroll and people adminfor you, so you can focus on growing your team and business instead.
If you're an employee or pensioner in the UK, you may have come across the term "P60" in your tax affairs. This document serves as a critical record for your annual earnings and tax deductions. Our comprehensive guide will explain what a P60 form is, why it matters, and how to obtain a copy if needed.
What is a P60 Form?
A P60 form, or "End of Year Certificate," is a document that provides you with a summary of your earnings, tax deductions, and National Insurance contributions (NICs) for a specific tax year (running from 6th April to 5th April the following year).
If you're an employee or receive a pension in the UK, your employer or pension provider is legally obliged to provide you with a P60 form within 45 days after the end of the tax year, which means you should receive it by 31st May.
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 NICs deducted from your salary, ensuring that you have paid the correct amount. It can also aid in claiming any tax overpayments or rebates you may be entitled to.
- Record-keeping: a P60 enables you to maintain accurate records of your financial history, which can be beneficial for tax planning or in the event of an audit by HM Revenue and Customs (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. Keep them for at least 22 months from the end of the tax year to which they relate. This duration is necessary because HMRC may investigate your tax affairs up to 20 months after the end of the tax year in question.
Can I get a P60 if I'm 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.
How to Get a Copy of Your P60
Your employer or pension provider is responsible for issuing your P60 form each year.
With Onfolk, your P60 is automatically sent to you every year to your email address - no need to request it from your employer.
What if I haven't received my P60 by 31st May?
- Contact your employer or pension provider: your employer's payroll or HR department should be able to provide you with a copy of your P60, in physical or digital version.
- Request a replacement P60: If your employer or pension provider cannot 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 to review its conten 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 NICs.
- Taxable income: The portion of your income 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 withheld from your salary throughout the tax year.
- NICs deducted: The total amount of NICs 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. Ensure that all these details are accurate and up-to-date.
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 NICs 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.
Common P60-related Issues and How to Resolve Them
What if my P60 isn’t correct?
If you find any discrepancies or errors in your personal information, income, or deductions, inform your employer or pension provider immediately. They are responsible for correcting any mistakes and providing you with an updated P60.
What do I do if I’ve lost or damaged my P60?
If you've misplaced or damaged your P60, request a new copy from your employer or pension provider. If they cannot provide one, contact HMRC to request a replacement.
I was given multiple P60s
If you have more than one job or pension provider, you may receive multiple P60s. Each employer for whom you’ll have worked in the tax year 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 respective employment or pension source.
I’ve not yet been given a P60 or my P60 is late
If you haven't received your P60 by 31st May, contact your employer or pension provider to inquire about the delay. They are legally obligated to provide you with your P60 within 45 days of the tax year's end.
Can I get a P60 for previous years?
If you need a P60 for a previous tax year, first contact your employer or pension provider. If they cannot provide a copy, request a replacement from HMRC. Note that HMRC can only provide a replacement P60 for the past six tax years.
Understanding your P60 form is crucial to managing your personal finances and tax obligations effectively. Ensure that you review your P60 thoroughly, store it safely, and promptly 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.
Onfolk Makes Managing Payroll and HR Simple and Stress-Free
The benefit of combined payroll and HR software is that you save a ton of time on administrative tasks related to running your business while saving money on expensive accountants and HR consultants.
Onfolk is a modern, cloud-based platform built for startup founders and business owners employing a diverse team. Our platform combines HR software with almost fully automated payroll, so all your employee and pay data is in one place, accessible at all times.
As your employee data syncs automatically with your payroll, it takes just 3 minutes every month to run. This also means you only need to keep one system updated, ensuring your employee data and payroll are always free of discrepancies.
On top of being simple and fast to use, Onfolk provides you with other tools key to building your team effortlessly: a time-off management tool, 2-click employee onboarding and offboarding, customisable task lists, integrations with Xero, Quickbooks and your pension provider, fully customisable people metric dashboards and reports, and so much more.
If you use Slack to communicate with your team, Onfolk integrates with Slack too - get reminders for employee birthdays and anniversaries, as well as who is joining soon or on holiday that week.
Running a business comes with many responsibilities - Onfolk takes care of payroll and people adminfor you, so you can focus on growing your team and business instead.
