A P60 is your proof of income for the whole tax year.
It is a summary of all your pay and the deductions that have been taken out of it. You should never destroy your P60, as it is one of the easiest ways to prove how much tax you have paid.
How the P60 Works
A P60 (End of Year Certificate) is an annual statement issued to employees at the end of each tax year that details:
- Total pay from all current and previous employments during the previous tax year
- The total amount of tax deducted via PAYE
- National Insurance Contributions
- Student loan and statutory payments, such as maternity/paternity pay.
Who gets one?
If you are working as a PAYE employee (normal worker), your employer(s) should send out your P60 to you by April or May. They must do this by 19th May following the end of the tax year.
If you run a limited company and draw a salary, you need to issue yourself a P60 on the 5th April. Your accountant can do this for you.
You should also receive one from your pension provider if you are in receipt of any pension income. Please note that this doesn’t apply to the state pension.
Seeing as sole traders do not draw a salary, sole traders would not need to issue themselves with a P60. If you receive a salary from other sources, you should get a P60 from your employer(s).
Whether you are a sole trader or run a limited company, you must file P60 for all employees on your books at the end of the tax year (5 April). The forms must be received by employees by the 19th May.
What if I have multiple jobs?
If you are employed by more than one company in a given year, you may receive separate forms from each of them. If you have left an employer and been issued with a P45, you will not receive a P60 from that employer.
What do I need my P60 for?
There are several reasons why you will need your P60. You will need it to:
- File a Self Assessment tax return
- Apply for a mortgage
- Apply for a loan
- Apply for Universal Credit or Child Tax Credits.
- Claim a tax refund
- Prove your income for bursaries and grants
- Prove your income with any disputes with HMRC