Known as an End of Year Certificate a P60 is an annual statement released to employees from their employer at the end of each payroll year. Its a record of your PAYE earnings and tax over the last payroll year collated and summarised in one document.
So what do you need a P60 for?
You’ll need it to prove how much tax you’ve paid on your salary to do for example:
- claim back overpaid tax
- apply for tax credits
- proof of your income if you apply for a loan or a mortgage
Sometimes you’ll need to show it to someone to also prove your income/tax situation for example:
- filing a Self-Assessment tax return
- applying for a mortgage.
- claiming a tax rebate.
What does a P60 look like and what information does it contain?
When do I receive my P60?
You’ll be sent your P60 by your employer every year, usually within a few weeks of the end of payroll year. Tax year runs from 6th April to 5th April.
What if I have more than one job?
If you have multiple employers, then you will receive a P60 from each employer after the tax year ends. Make sure you keep track of them and keep all documentation in case you need them for tax rebates or other important business.
As an employer what do I need to know about P60’s?
When you’re putting employee’s through the PAYE payroll system you will have to file a yearly report for your account, you can do this digitally. Once this has been filed it will send you your employee’s P60 documents. *Remember* These documents MUST reach your employees before May 31st or you may be in line for a fine.
If you are running a Limited Company payroll and paying yourself a salary from it, you are employing yourself through PAYE and will need your own P60 every payroll year to document these earnings.
We offer this as part of our payroll bureau service for more information click here
Do Sole Traders get P60’s?
As a P60 is usually a record of PAYE earning and tax over a year, Sole Traders aren’t usually part of a payroll system. This means no P60 at the end of the tax year. The only way you would receive a P60 as a Sole Trader is having income from another source in which case they will issue you a P60 as normal.