If you work or have worked in the UK during your lifetime, you’ve probably heard of a P60 form.
A P60 is one of three tax-related documents that inform future employers how much you've paid in the tax year. The three primary tax documents are the P45, P60, and P11D.
The most common ones are the P45 and the P60 forms.
A P60 form shows how much you've earned from your job and can be used as proof of income. A P45 will tell your new employer your tax code to determine how much tax you should pay and other information needed when starting a new job.
A P60 will tell you all of the following information:
- National Insurance number: Your National Insurance number can be found on your P60, P45 and any of your payslips.
- Paid income tax: You'll see the amount of tax you paid, including student loan deductions, statutory payments and any contributions to National Insurance.
- Take-home pay: On your P60 form, you can see your total earnings for the year, and this is the main reason this form is used as proof of income.
- If you've had multiple jobs: If you've changed jobs during the tax year, your P60 will show your gross earnings and tax paid for all jobs.
So, now that you know what a P60 is, you may be curious why it’s so important. In this article, you’ll learn what to use your P60 for and how to get one.
Why Is a P60 So Important?
A P60 shows earnings for the tax year and includes your national insurance contributions, potential student loan deductions, and statutory payments such as paternity pay.
The P60 form shows all you've paid in the financial year, dating between 6th and 5th April. The document shows proof of your salary and all your taxes. It's important to note that private pension or any state pension schemes you're a part of are not shown on your P60.
AP60 holds a lot of important information about your financial situation, and that's why it's an excellent document for showing your proof of income. You may be wondering when you'll need your P60, as it's not something everyone worries about, but there are certain situations it comes in handy.
You'll need a P60 in the following situations:
- Tax paid: Your P60 will show how much tax and national insurance you've paid on your salary within the current tax year. If there are any tax disputes from HMRC, you can use your P60 as proof for the investigation.
- Tax credits: If you need help with your finances and have a low income, you may be entitled to tax credits. Your P60 will help you more effortlessly apply for tax credits.
- Mortgage or loans: When taking out a loan or a mortgage, your lender needs to know you’re a good person to lend money to and can afford to make your monthly payments, and your P60 is proof that you can afford the mortgage or loan.
- Claims: Sometimes mistakes can happen where payroll is considered, and sometimes you pay more tax than you should. You can use your P60 to claim back overpaid income tax. You'll need proof if you're wanting a tax rebate.
You can check your P60 personal tax account to see if you've paid too much income tax the previous year. You may also see your total pay and all the taxes you've paid from your last employment over the recent tax years.
HMRC calculates everyone in the UK's Income Tax between June and November. You'll be entitled to a tax return if you've been charged too much tax. If you have paid more tax than you're supposed to, you'll usually be informed by HMRC that you're due a tax rebate.
How Can You Get a P60 Form
You should get an annual P60 form when the tax year ends. Your employer must provide you with a P60 form by 31 May, either on paper or electronically. You should receive a P60 from each employer if you have more than one job.
If you can't get one from your employer, there are two methods you can use:
- Personal tax account: You log onto your personal tax account using the Government Gateway to view and print the information on the p60 form.
- HM Revenue and Customers (HMRC): You can contact HMRC and ask for the information on your P60 form.
If you work for yourself or are someone who does their own Self Assessment Tax Return, there is a different approach you'll need to take to get a P60. If you're self-employed, you're likely not part of a PAYE scheme or have a payroll department, so you won't be able to obtain a P60 form like everyone else.
Typically, you're required to file your Self Assessment Tax Return, and HMRC assumes that you keep track of all your tax records and other important financial documents, so when you submit your tax information each financial year, you'll have your proof of tax, you've paid and income you've received.
If you need a P60, you'll have to contact HMRC so they can send you one. For it to be accurate, you must provide proof of all your finances for the tax year.
If you're unemployed and receive a pension, you will receive a P60 from your pension provider.
Final Thoughts
The P60 form allows you to track all your finances each year. If you want a mortgage or need to know the amount of tax you've paid, including your national insurance contributions and your total pay for the end of the tax year, a P60 is the document you need.
If you have lost your P60, you can get the same information directly from HMRC or by checking your Personal Tax Account.
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