PAYE and tax forms all have different uses. A P60 form is a very important document, and it’s vital to keep yours in a safe place. P60’s are issued every tax year by your current employer.
Our guide looks at what a P60 for is, and how to use the information on it. We’ll take you through receiving your P60 and explain how long you should keep this important PAYE document for, and why.
P60 Explained – What is It?
P60 forms are issued at the end of every tax year that you are in employment. The tax year runs from the 6th of April to the 5th of April each year.
As well as showing the tax and national insurance you have paid, a P60 records your income earned for the previous tax year. It will also show if you have paid too much tax for the income you have earned and if you are eligible for a tax refund.
In the instance you have more than one job, you will receive a P60 for each separately. P60s hold all information relative to the tax you have paid in total for that particular tax year.
The form itself comes from your employer and should be issued as part of regular PAYE reporting activities. This means you do not need to request the form to be issued.
P60’s are used for tax purposes, they provide proof of how much tax you’ve paid in the previous years. The income information also means they’re often requested during finance or rental applications.
It will also show if you have paid too much tax for the income you have earned and if you are eligible for a tax refund. You will only receive this if you are in employment at the end of the tax year and it is usually issued in April or May each year. If you are eligible for a refund, HMRC will issue this automatically.
P60 forms are also used to provide proof of income should individuals need it. This might be for tax credits or applying for a loan or mortgage. If you are registered to fill in self assessments then you will need the information from your P60.
Also, pension providers will issue P60s. If you are working and in receipt of a pension, your employer will deduct the tax. If you receive only a pension then you pay the tax yourself.
See Also: P60 for self employed.
How to Get a P60
P60s are issued by your place of employment – it’s a legal requirement for them to issue one each year.
There is nothing you need to do to receive yours. This comes directly from your employer after the tax year ends. Often, employees receive theirs in late April or early May and this can sometimes be a staggered process. You will not receive one if you are not employed at the end of the tax year.
Lost P60s – Getting a Replacement Copy
Do not panic if you lose your P60, it is possible to get a replacement copy. There is an alternative form called a Statement of Earnings which holds the same information as the P60.
You can ask your employer for one of these if you cannot find your original P60. You can also log into your tax account and retrieve a copy which can be downloaded or printed off.
A call to HMRC is another way of being sent a replacement, either by email or post.
Can You View P60s Online from HMRC?
As a worker, you cannot view the actual P60 online but you can access the information that would be on it.
You can do this by logging into your personal tax account to view the information. However, if you are of pension age, you may be able to download your P60 directly from your pension provider. You should be able to do this via their website, using your details to log in.
What Information is on a P60?
The p60 form contains different sections, some of which are for personal information and the rest for financial details. It is usually displayed as one single sheet, like a certificate.
On the form you will find:-
- Employee details: This includes information such as name and National Insurance number.
- Gross income: The total income before any tax is deducted.
- Income Tax: The amount deducted in the form of tax.
- National Insurance deductions: summary of payments deducted for NI.
- Statutory payments: Details of payments such as maternity or paternity pay.
- Other information: This includes details of student loans.
- Employer’s details: Information such as their name and address.
What If There’s a Mistake on the Form?
You might notice an error when looking through your P60, this happens from time to time.
When this occurs, you should go directly to your employer. They can either issue an updated version, correcting the discrepancies or they may issue a letter with the changes.
If you are not sure if the information is correct, then you can compare details against your payslips.
What’s The Difference Between a P45 & a P60?
There are a few key differences between a P45 & a P60.
The main difference is that the P45 is issued once and this is when an employee leaves their job for whatever reason. A P60, on the other hand, is issued annually with information on earnings for the tax year.
The P45 contains information on it that your new employer needs to put you on the correct tax code. This ensures you pay the right amount of tax. A P60 is for your own records and is a summary of your income and tax paid.
Both PAYE forms are a legal requirement that your employer should issue without hesitation. It is a good idea to hold onto these forms for a good few years as you may need information from them at some point.
See Also: What is a P45 Form?
How The Information On The Form Can Be Used
P60s have a variety of uses and should be kept in a safe place for at least 4 years.
Once you have checked the information is all correct, pop it somewhere safe in case you need to dig it out again.
There are a few valid reasons for needing this PAYE form down the line. It is a much recognised form used by several organisations.
P60s & Tax Refunds
The most popular reason for needing to retain your P60 is to sort out a tax refund if applicable.
Once you have received your P60, you can check the amount of tax you have paid is correct. Should you find that you have overpaid in tax then you will need the P60 to evidence this.
You are entitled to request a tax rebate if you have overpaid. HMRC will issue a form known as a P800 Letter if there has been a mistake regarding paid tax.
How to Make Sure You Can Always Find Your P60
We now understand the importance of keeping your P60, but where is a sensible place to keep them?
Bearing in mind you want to keep yours for 3 to 4 years, you want to keep them somewhere accessible but secure.
They are issued annually so keeping them together in a file makes sense. You can then destroy them one by one as the years pass. You do want to make sure you keep them for as long as possible. If you are applying for a loan or mortgage they will require proof of income from the last 3 years as standard practice.
If you prefer a digital version of your documents, scanning a copy of your P60 and emailing it to yourself can be a good idea.
Should lose your P60 though, you can get another copy of the information from the form.
A P60 documents an employee’s gross pay for the tax year. This is issued on an annual basis, around April or May time.
P60s come from employers so the self employed are not issued with these forms. Instead, they use the HMRC self assessment to record all their financial records.