What is a P60 form?: Ultimate guide

A P60 form details how much you earned during the tax year (which runs from 6 April to 5 April the following year). It also contains the amount of National Insurance payments and Pay As You Earn (PAYE) income tax you’ve paid.

The data on your P60 is based on information provided by:

  • You, in your self-assessment tax return
  • Your employer, including bonuses and benefits, the hours you work, and your salary
  • Your pension provider, including total contributions, how frequently you pay into your pension and tax deductions
  • The Department of Work and Pensions, which shares any state benefits you’re paid
p60 form

What information is on my P60 form?

Understanding a P60 is beneficial. Your P60 is made up of the following figures:

  • Total pay: How much money you have made from your job
  • The total amount of tax deducted: The amount of income tax withheld by the employer issuing the P60
  • Contributions to National Insurance: The total amount of NI contributions paid in the fiscal year
  • Total compensation from past jobs
  • The total amount of tax deducted from prior employment
  • Statutory payments like maternity and paternity pay

The final tax code is used by the employer when issuing the P60. Your PAYE tax code is essential, and getting it wrong can result in you paying the wrong amount of income tax

  • Deductions for student loans

Why are they important?

Your P60 form is critical, and it is advised that you maintain all of your P60 forms from the previous four tax years. You may need your P60 form for many reasons:

  • Sometimes the tax office does not have your P60 information on file. If this is the case, and you apply for a tax refund or a tax rebate, you will not be able to get your money until your P60 is found. By submitting a P60 to the tax office, your record will be updated and your tax rebate will be issued.
  • When applying for credit, such as a mortgage, you will often be required to produce proof of wages, such as a P60 form.

Why you might not have a p60

Being Self Employed- As a self-employed person, you are not covered by a PAYE scheme and will not get the P60 form.

As a Sole Trader– If you are a single trader and do not get a wage, you are not required to issue yourself a P60. However, if you have employees you must file the form.

Change in job role-You withdrew from your employer’s position and received a P45 instead.

Lost form-Your company issued you a P60, but it was misplaced; you can request a copy instead.

If your company does not run payroll, you should notify HMRC if they deduct taxes and provide you with a payslip.

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