HMRC delights in giving its never-ending collection of forms cryptic names. The P60 is just one of them, and you’re about to learn everything you need to know about it.

The P60 form is a key document in the UK tax system, summarising an employee's total pay and tax deductions for the financial year. Issued by employers after the end of the tax year, it serves as proof of income and tax paid, which is essential for tax returns, loan applications, and verifying income. 

Understanding the P60’s contents and its importance can help both employees and employers manage their financial records more effectively. This guide will explain what a P60 is, how to obtain it, and why it matters.

What is a P60?

A P60 is a summary of your pay and all deductions in a specific tax year (that’s 6th April right through to 5th April the following year).

The P60 form contains several key sections, each providing important information about your annual earnings and tax details. Here’s a detailed breakdown of what you can expect to find on your P60:

• Personal information: This includes your name, National Insurance number, and sometimes your address. Ensure these details are correct, as they are crucial for your tax records.

• Employer information: This section lists your employer's name and address, along with their PAYE (Pay As You Earn) reference number. This helps HMRC identify your employer.

• Tax year: Indicates the financial year the P60 covers, typically running from April 6th of one year to April 5th of the next.
• Total pay and income tax: Shows your total earnings for the year and the amount of income tax deducted. This is vital for verifying that you’ve paid the correct amount of tax.
• National Insurance contributions: Lists the total National Insurance contributions you’ve made. These contributions go towards state benefits and pensions.
• Statutory payments: Details any statutory payments you received, such as Statutory Sick Pay (SSP) or Statutory Maternity Pay (SMP).
• Student loan deductions: If applicable, this section shows any repayments made towards your student loan directly from your salary.
• Pension contributions: Indicates any pension contributions deducted from your salary, which is important for your retirement planning.
• Tax code: Displays the tax code used to calculate your income tax. Ensure your tax code is correct, as an incorrect code can lead to overpayment or underpayment of tax.
• Employer’s final pay and tax figures: This section provides a summary of your final pay and tax figures for the year, useful for your personal financial records.

Each of these elements plays a significant role in ensuring your tax affairs are in order. Keeping your P60 and understanding its contents can help you manage your finances and address any discrepancies promptly.

Who gets one?

If you’re receiving a salary on 5th April, you should receive one by the 31st May that year. If you run a limited company and draw a salary, you’ll need to issue yourself with a P60. In most cases, your accountant will do this for you. If you’re a Crunch client, then you can access your P60 within the Crunch system.

Why do I need one?

Aside from being a handy record of the amount of tax you’ve paid, the form may be required for a number of other reasons, including:

• Reclaiming any overpaid Income Tax or National Insurance
• Applying for anything means-tested, such as tax credits
• Completing a Self Assessment return
• Applying for loans or mortgages.

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Step-by-step guide on how to obtain a P60

Obtaining your P60 is straightforward, but it’s important to follow the correct steps to ensure you receive this essential document. Here’s a step-by-step guide:

1. End of tax year: The P60 is issued by your employer after the end of the tax year (April 5th). Employers are legally required to provide this by May 31st.

2. Contact your employer: If you haven’t received your P60 by early June, contact your HR department or payroll office. They are responsible for issuing P60s to all employees.

3. Verify information: When you receive your P60, verify all the information is correct, including personal details, earnings, and tax paid. Report any discrepancies to your employer immediately.

4. Lost P60: If you lose your P60, ask your employer for a duplicate. They are not legally required to provide one, but most will assist you.

5.Digital P60s: Some employers issue digital P60s. Check your company’s payroll system or employee portal to access your digital P60.

6. Former employees: If you’ve left your job, your former employer should still provide you with a P60 for the period you worked within the tax year. Contact them directly if you haven’t received it.

What are my responsibilities as an employer?

Whether you’re a sole trader or run a limited company, you need to file P60 forms for all employees who are on your books on 5th April each year. The forms must then be provided to your employees by 31st May the same year. Ensuring compliance with HMRC regulations and providing accurate information to employees.

The forms can be printed or digital – the choice is yours. Here are the key responsibilities of employers regarding P60 forms:

• Issuing P60s: Employers must issue a P60 to each employee who is on their payroll at the end of the tax year. This must be done by May 31st following the end of the tax year (April 5th).
• Accurate information: It is essential to provide accurate details on the P60, including total earnings, tax deducted, National Insurance contributions, and any statutory payments. Errors can lead to tax discrepancies and potential penalties.
• Digital and paper copies: Employers may issue P60s either as paper documents or digital versions. They should ensure that digital P60s are easily accessible to employees, typically via a secure online payroll system.

• Record keeping: Employers must keep records of all issued P60s for at least three years. This is important for audits and any future employee queries.

• Assistance with corrections: If an employee reports an error on their P60, the employer is responsible for issuing a corrected P60 and ensuring that HMRC is informed of the change.

• Guidance and support: Employers should provide guidance to employees on how to read and understand their P60s, and be available to answer any questions they might have.

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Other key questions about the P60 from:

What if I have multiple jobs?

If you’re employed by more than one company on 5th April in a given year, you’ll receive separate forms from each.

What if I use an umbrella company?

Contractors operating through a UK umbrella company will receive a P60. Your umbrella company should provide it to you – check out our Crunch Umbrella service for information on how we support our Umbrella contractors.

Do I need a P60 as a sole trader?

Since you don’t draw a salary as a sole trader, you won’t need to issue yourself with a P60. However, if you have any employees, you’ll need to issue these forms to them. If you receive a salary from other sources, you should get a P60 from your employer(s).

Using the P60 with confidence

Understanding the P60 form is essential for both employees and employers in the UK. This document summarises annual earnings and tax deductions, forming important evidence for tax returns, loan applications, and financial verification. 

Employees should ensure they receive and review their P60, while employers must issue accurate P60s by May 31st each year, maintaining compliance with HMRC regulations. 

By effectively managing P60s, individuals can ensure their tax affairs are in order, and businesses can support their employees' financial needs. For further assistance, Crunch offers comprehensive accountancy support for managing P60s and other tax-related documents.

Limited company accountancy support

Check out our limited company online accountancy support for more details on how Crunch can support you and your business, helping you file your Self Assessment, manage your accounts, and claim your expenses.

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