P60 form: what it is and how to obtain it
In your tax affairs, you may have encountered the term P60 if you're an employee or pensioner in the UK. Your annual earnings and tax deductions are recorded in this document. In this article Zyla Accountants will explain what a P60 form is, why it matters, and how to obtain a copy if necessary.
In what way does a P60 form help you?
You will receive a P60 form, or "End of Year Certificate," when you submit your tax returns for the year (running from 6th April to 5th April the following year).
You must receive a P60 form within 45 days after the end of the tax year if you are an employee or receive a pension in the UK.
What is the importance of a P60?
P60 forms serve several purposes, including:
A P60 is a detailed summary of your income for the tax year, which can be used for mortgage and loan applications.
A tax reconciliation ensures that you have paid the correct amount of income tax and NICs deducted from your salary. In addition, it can assist you in claiming any overpayments or rebates you may be entitled to.
P60s provide accurate records of your financial history, which can be helpful for tax planning or in the event of an audit by HM Revenue and Customs (HMRC).
P60s provide important information regarding your employment income, tax deductions, and national insurance contributions if you have to file a Self Assessment tax return.
In order to determine your eligibility for some government benefits, you may be required to provide your P60 as proof of your income.
In order to preserve your financial history, it's important to keep your P60 forms in a safe place. After the end of the tax year to which they pertain, keep them for 22 months. Due to the fact that HMRC may investigate your tax affairs up to 20 months after the end of the tax year, this duration is necessary.
If I'm self-employed, can I get a P60?
As a self-employed individual, you do not receive a P60 form since you do not have an employer or pension provider. On your Self Assessment tax return, you must keep track of your income and expenses throughout the year.
Here's how to get a copy of your P60
Each year, your employer or pension provider will issue you a P60 form. The P60 is automatically emailed to you every year by Zyla Accountants via Brightpay.
What if I haven't received my P60 by 31st May?
Your employer's payroll or HR department should be able to provide you with a copy of your P60, either in physical or digital form.
HMRC will issue a replacement P60 if your employer or pension provider is no longer in business or cannot provide you with one. In case you need a replacement, it's best to act quickly.
The P60 Form: What You Need to Know
Review the contents of your P60 carefully when you receive it. Details will be included in the form:
Name, address, tax code, and National Insurance number are all part of your personal information.
Your employment income is the amount you earn before taxes and national insurance contributions.
Due to tax allowances or reliefs, your taxable income may be lower than your total earnings due to income tax.
The total amount of income tax withheld from your salary during the year.
The amount of NICs deducted from your salary during the tax year.
Additional information on your P60 may include student loan deductions, statutory maternity pay, or statutory paternity pay. Make sure all these details are accurate and up-to-date.
What is the difference between a P45 and a P60?
The P45 form differs from the P60 form. The P60 is an end-of-year summary of your income, tax deductions, and national insurance contributions. You receive a P45 when you leave your job. Until you leave that job, it provides details about your income and tax deductions. Your new employer will need your P45 to ensure that you are taxed correctly.
Here are some common P60-related issues and how to resolve them
If my P60 is incorrect, what should I do?
Immediately notify your employer or pension provider if you discover any discrepancies or errors in your personal information, income, or deductions. A corrected P60 must be provided to you by them.
If I lose or damage my P60, what should I do?
Request a new copy of your P60 from your employer or pension provider if you have misplaced or damaged yours. Request a replacement from HMRC if they are unable to provide one.
There were multiple P60s given to me
It is possible to receive multiple P60s if you have more than one job or pension provider. You must receive a P60 from each employer for whom you worked during the tax year. Each one will reflect the income and deductions for each employment or pension source, so keep them all.
I haven't received my P60 yet or it's late
Contact your employer or pension provider if you haven't received your P60 by 31st May. Within 45 days of the end of the tax year, they must provide you with your P60.
Do you have P60s for previous years?
If you need a P60 for a previous tax year, contact your employer or pension provider first. Request a replacement copy from HMRC if they cannot provide one. For the past six tax years, HMRC can only provide a replacement P60.
Managing your tax obligations and personal finances effectively requires understanding your P60 form. Your P60 should be reviewed thoroughly, stored safely, and any discrepancies addressed as soon as possible. Maintaining accurate financial records will prepare you well for future tax and financial issues.