P60 for Self Employed – Do Sole Traders Need to Get This PAYE Form?

A P60 form is something that is usually issued by an employer. Self employed traders submit their earnings data via self assessment tax returns. Generating a p60 is not part of this process.

There may be times when you’d need proof of self employed income, that a P60 would provide. Our guide looks at what forms provide this to sole traders.


What is a P60 Form?

A P60 form is an official HMRC document that details how much you have earned, and how much tax you’ve paid during the tax year. It is issued to employees by their employer.

The tax year runs from the 6th of April to the 5th of April and a P60 shows the income for this period. It also shows any tax you have paid and any National Insurance contributions.

The data on the P60 is most commonly used as proof of income for finance applications such as mortgages. You may need this information if you ever need to prove your earnings.

Employees are issued with P60’s automatically at the end of each tax year.


Information Found On A P60 Form

If you’re asked for a P60, its to provide key information about income, tax, and national insurance.

The form contains the following information:-

  • Gross income for the tax year (income earned before tax).
  • Details of tax paid.
  • Amount of National Insurance contributions.
  • Any relevant personal details.
  • Your employer’s details.
  • The tax code you are on.

Do Self Employed Get a P60?

A P60 form comes from your employer so it is not something you will be issued with if you are self employed.

You can still obtain a form with the information you need though. All the information you need will be on your tax returns which are all accessible via your Government Gateway Account. The official form for recording self employed income is an SA302.

You can locate this by going to Self Assessment > More Self Assessment details. You can download the form from that section.


P60s & Company Directors

Some self employed company directors have P60’s issued. This is the case if they are also an employee of their LTD company and are issued a salary via PAYE.

These will generally be issued via an accountant if applicable or by going into the payroll tools on the HMRC website.

Their copy will be the same as any other employer, detailing their income, tax and National Insurance contributions.


What is a P60 Used For?

A P60 is and important document, which is used to create a record of all your earnings in that tax year, plus tax information.

There may be a time when you need to prove your earnings and are asked for a P60. For the self employed, the SA302 can also be used in the following scenarios:-

  • When applying for a mortgage. You will not be approved for any sort of mortgage without showing your earnings. These are needed so that your mortgage provider can assess how consistent your income is before agreeing on the amount.
  • Should you require a bank loan. Again, you will not be accepted for a bank loan without proof of income. The amount you get and the payback schedule will depend on this information.
  • When you need to claim a tax refund. In the event you have been paying too much tax or National Insurance contributions, then a P60 will be required. This sometimes happens if you change jobs and end up on the emergency tax code.
  • Applying for benefits and tax credits. Should you be eligible for any benefits or tax credits then you will need to show proof of earnings. This is because such financial aids are often means tested.
  • Transitioning from employed to self employed. You will need the information from the P60 for your first tax return as a sole trader. You can also use your P45 from a previous employer for this purpose.

P60 Equivalent for Self Employed

The equivalent form to a P60 for the self employed, is an SA302. This provides all the relevant financial and tax information.

Most organisations will be aware that this is the correct document for you to provide. It’s readily accessible in your Government Gateway account, or your accountant can provide you with a copy.

Further Reading: Late Filing Penalties Self Assessment.


FAQs

Do you need a P60 to register as self employed?

You do not need a P60 to register as self employed. However, if you were employed during the same tax year that you are now self employed, you may need the information from it to help fill out your first tax return.

Is self employment income provided on a P60?

A P6O will not contain your income details as a self employed person. This information is recorded on your self assessment tax return. An employer can only add details of the income you earned while in their employment.

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