Our Guide to Understanding P60s

What is a P60? 

A P60 is an end of year certificate produced by an employer or pension provider. 

It confirms the following information for the tax year (to 5th April): 

• Pay for the year 
• Tax deducted in the year 
• Employee NI (National Insurance) Contributions due in the year 

Please note that the pay figure is taxable pay and may differ to gross salary. Taxable pay is typically gross salary (including commission, overtime and bonuses) less any salary sacrifices and employee pension contributions. 

A P60 does not show gross salary or net pay. 

An employer, or pension provider, will issue one after the end of the tax year (5th April). Current employees should receive it by 31st May. 

Why are P60s important?  

A P60 is proof of earnings and income tax paid. You may need it to prove your pay, tax paid and tax status to a third party. 

For example, you may require it for: 

• Completing a self-assessment tax return 
• Reclaiming an overpayment of income tax 
• Proof or earnings when applying for credit i.e., loan/mortgage 
• Applying for tax credits/universal credit 

If you do not get a P60 from your employer or pension provider, or you have lost it: 

• You can ask your employer/pension provider to re-issue one or provide you with a statement of earnings 
• Your mortgage provider or lender may be able to accept three months’ payslips instead 
• You can use your personal tax account to view and print the information for the latest and previous P60s 
• You can also contact HMRC (HM Revenue & Customs) by telephone and ask them for more information 

It is important to retain a P60 for at least four years. 

What personal details are included in P60?  

• A P60 will include: 
• Pay for the year 
• Tax deducted in the year 
• Employee NI Contributions due in the year 
• Statutory payments included in the pay from this employment such as: 
  • Statutory Maternity Pay (SMP) 
  • Statutory Paternity Pay 
  • Statutory Shared Parental Pay 
  • Statutory Adoption Pay 
• Student loan and postgraduate loan deductions 
• Tax code at the end of the tax year 
• Employee name 
• National Insurance number 
• Employers PAYE reference 
• Employers name and address 

A P60 does not confirm gross pay, net pay, or any pension contributions paid. It will include National Insurance number and Employers PAYE (Pay As You Earn) reference. 

HMRC create the P60 form, so they will all have the same style and format regardless of the employer. 

How to update an employee's P60 information  

Where a P60 includes incorrect information, an employer can issue a replacement. The employer must clearly mark this as a replacement. The employer can also issue employees with a letter confirming the changes to the P60 in writing. 

Where an employee has paid too much tax, the employee must contact HMRC. There is a service online to assist the employee with claiming a tax rebate.  

Each year HMRC calculate tax for individuals. HMRC will issue a letter by 30th November if the amount of tax an individual has paid is incorrect. This letter will confirm the tax rebate and how to organise repayment. 

FAQs 

What if my P60 is wrong? 

When receiving a P60, you should check the following are correct: 

• your name and National Insurance number 
• the figures agree to your payslips 

You should contact your employer if you find a mistake on your P60. They may give you a replacement form or a letter confirming the changes. 

What is P60 tax refund? 

A tax refund is for those have overpaid income tax. HMRC will send a P800 calculation by the end of November to allow individuals to receive a refund. 

If there is a “R” next to the tax paid figure, this reflects that the employee has successfully received a tax refund. 

Are P60s required for those who are self-employed? 

Self-employed individuals will not receive a P60. If you need proof of earnings and are self-employed the third party (i.e., lender) may ask for a copy of your SA302 and tax overviews. You can obtain this information from your online HMRC account or from your accountant. 

What is the difference between a P60 and P45? 

Your current employer(s) send you a P60 at the end of the tax year. 

You receive a P45 when you stop working for an employer. 

Both forms include pay and tax information until the date of the form. You will not receive a P60 from a former employer if you left before 5th April. 

How is tax calculated?     

A P60 calculates tax by assessing an employee’s earnings and applying the required tax code. 

Arrange a free consultation 

If you have any questions or concerns regarding your P60 please give TaxAssist a call, we would be happy to help. Give us a call on 0800 0523 555 or contact us using the online enquiries form. 

Date published 4 Oct 2023 | Last updated 5 Oct 2023

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

---