What is a P60?

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What is a P60?

A P60 is an official form issued by HMRC which Employers use to their Employees of the following information:

  • How much Taxable (or Gross) Salary has been paid;
  • The amount of Income Tax deducted;
  • The amount of National Insurance deducted; 
  • Details of other statutory payments such as Maternity Pay, Student Loan Deductions or Paternity Pay.

When Is a P60 Issued?

The information on the P60 form covers one complete tax year (6 April to 5 April) and the deadline for an Employer to provide their employees with this piece of information is 31 May following the end of the previous tax year.

For example a P60 covering the tax year 2016/2017 (6 April 2016 to 5 April 2017) should be issued by Employers to all their Employees in their employment by 31 May 2017.

Download a sample P60 Form HERE.

If you Changed Your Job Part Way Through the Tax Year

If you changed jobs and moved to a new Employer you should only expect to receive one P60 form from your current Employer.  When you left your previous employment you will have been issued with a P45, which would have detailed all the tax and national insurance you paid for the part of the tax year you worked for them.

Example:

Karan changed jobs in the tax year 2016/2017. From 6 April 2016 to 30 November 2016 she worked for Company A but from 1 January 2017 she worked for Company B.

When leaving Company A Karan will have been issued with a P45 which shows her personal details, tax code as well as the total amount of tax and national insurance deductions made from 6 April 2016 to 30 November 2016.

When Karan started her new job at Company B she will have handed them her P45 which will give her new Employer sufficient details to ensure the correct deductions are made from her salary from 1 January 2017.  Then once the tax year has ended on 5 April 2017 she should expect to receive a P60 form by 31 May 2017 from Company B, which will summarise all the tax and national insurance they have deducted from her gross salary.  There is also a box which will show the Gross Pay and Income Tax deducted when she worked for Company A on the P60 form so Karan will be able to see the total tax she has paid for the entire tax year on a single P60 form.

Find Out More About the P45 Form HERE

 

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