You may have more than one P60 form hanging around in the back of a draw so may be wondering what a P60 is used for and whether you should keep hold of it.
A P60 is an official form completed each year by your Employer to notify you how much tax, national insurance and other statutory deductions made from your gross salary for the most recent tax year. You can find out more about the P60 Form HERE.
What is a P60 Used for?
Here are some important uses of a P60 and why you may just want to keep your P60 form somewhere safe.
To Claim Back Overpaid Tax
Your P60 is official evidence of the tax and national contributions you have made through a tax year (6 April to 5 April). If you do find yourself in a situation where you do feel you have overpaid tax, your P60 form will be a useful document to prove what you have actually paid.
Proof of Income
Holding onto your P60 forms may become useful if you need to prove your income for example if you are applying for a loan or mortgage.
To Apply for Tax Credits
If you do need to claim tax credits or other state benefits, again you may be asked to provide a copy of your P60 form as evidence of your income as part of your application.
To Complete your Self Assessment Tax Return
You may need to complete a Self Assessment Tax Return even if you are employed. For example, if you receive rental income or you freelance as well as holding down a full or part time job.
Your Self Assessment Tax Return should provide HMRC with a complete picture of your earnings for the Tax Year you are reporting on. Therefore you will need your P60 form which shows the income tax you have paid in your Employment so you can enter them in the ‘Employment’ section of your Tax Return.
Read More: Do I Need to Submit a Tax Return?
It is definitely advisable to keep hold of your P60 forms each year because you never know when you may need it to prove your income. If you have lost your P60 find out HERE how you can get a Copy of Your P60 Form.