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.
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