The P60 form, amongst other, is one of the many pieces of paper you receive from your employer. In this blog we will explain what a P60 is all about.
What is a P60?
A P60 is the official form your employer must issue you by 31 May each year which acts a proof of the amount of income tax and national insurance you have paid in the previous tax year. A tax year runs from 6 April to 5 April.
If you are in an employed job it is mandatory for your employer to provide this to you and you should make sure you hold onto it just in case you ever need to present evidence of the amount of tax and national insurance that has been deducted from your salary.
What Does it Look Like?
The P60 form can take slightly different formats and the one you receive will depend on your employer, however here is an example and of the boxes you should expect to see on the form you are given.
Should Everyone Receive a P60?
Anyone who receives their salary through the PAYE system should expect to receive a P60. That includes anyone who is a Director of their own Limited Company and takes a small amount through payroll in combination with Dividend.
Why Would I Need a P60?
Often it is a form that gets filed away and never looked at again. But there are some circumstances where you may find you need to demonstrate your income and to produce your P60:
- Mortgage Applications
- Claiming a Tax Refund
- As evidence for HMRC
What if you have more than One Job
It is common for people to hold down one or more jobs, in this case, you should expect to receive a P60 for each of the jobs you are employed in.
Does a Freelancer, Sole Trader or Self Employed Individual Receive a P60?
Probably not. A P60 is only issued when you take money through the PAYE system and you receive a payslip. If you are a sole trader or are self employed you will generally be paying tax via self assessment so should not expect to receive a P60.
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