What is form P60?
P60 End of Year Certificate (commonly known as P60 form) is the form given to an employee by an employer at the end of each tax year (starting from 6th April of previous year to 5th April of the current year) in the UK. It contains all the relevant details of the employee’s taxes – how much is their salary and how much tax has been deducted in that particular year. The employer must issue the P60 and share it with the employee on 5th April every year. The details given in this form are-
- Employees name, national insurance number and payroll number
- Income of the employee and tax deducted in the previous employment (if applicable) and current employment
- Segregation of National Insurance Contributions of the employee.
- Statutory payments made to the employee – maternity pay, paternity pay, adoption pay, sick pay and shared parental pay,
- Deduction from the students loan (if applicable for the employee)
- Employers personal details (full name and address)
- Employers PAYE reference number
Why is form P60 important?
- It helps the employee to fill their tax return, claim for overpaid tax and claim tax credits
- Employee can verify their national insurance number and check if their employer is deducting the correct rates
- It is helpful when applying for bank loans or mortgages as they ask for proof of income
- You can check the statutory benefits that you have received and cross verify it with your bank statements whether you have received that amount. If you have received less then you can contact HMRC or your employer and confirm the same.
- You can check how much of student loan has been deducted from your earnings if you reside in UK
- If you reside in Ireland, then you can check how much amount has been deducted from PRSI (Pay Related Social Insurance), PAYE and other social charges
How to get form P60?
An employee should ask their employer to issue them P60. The form can be downloaded by the employer by using their payroll software or can use any other HMRC approved software. Employer can also order the form online from HMRC.
What if I don’t receive my P60?
If you are an employee and your current employer has not shared P60, then you should take the following steps -
- Ask your employer to share it by 5th of April
- If you still don’t receive it, then contact HMRC and file a complaint with them
- Contact your local Social Welfare branch or tax office
What does P60 look like?
What is the difference between P45 and P60 form?
The main difference between P45 and P60 is that P45 is given when an employee leaves the current job and P46 is given at the end of each tax year to each employee. Other differences are
It is given by the employer to the employee when the employee is leaving the job.
It is given by the employer to the employee at the end of each tax year
It does not provide statutory payment details made to the employee like - maternity pay, paternity pay and sick pay
It gives details to how much the employee has received in statutory payments from maternity pay, paternity pay and sick pay
Contains tax related information for that particular job only. Other information includes PAYE, USC and PRSI
Contains tax information for that job as well as any other job undertaken by the employee that year. It does not contain PRSI or PAYE related information about the employee.
Multiple copies are provided of one which should be shared with the new employee.
Only one copy is given to the employee.
P60 for Self Employed and Directors
If you are self employed then you will not get a P60 and you are also not required to download P60 from HMRC. Since self employed draw their salary from earnings and not from any income based, hence they are not required to obtain this form. Any person who draws salary from a company needs to obtain their p60. If the Director of a limited company is taking salary from his business apart from the profit, the even they are required to obtain P60. They can ask their accountant to obtain it from payroll software or get it downloaded from HMRC payroll tools.
P60 for Retired and Pension Holders
People who receive state or private pensions will receive P60 from their pension provider at the end of the tax year where the payments made and the taxes deducted will be given. The tax code might also change for the pensioner if they start receiving state pension, private pension or Jobseeker’s allowance. If you have any queries related to the tax code changes given in P60, then you should immediately inform HMRC. The same is applicable for people receiving annuity or any other benefits in their income.
P60 if you reside in Ireland
If you reside in Ireland, then your employer will give you P60 from 1st of January to 15th February. It will include details like the total pay the employee has received during 1st January to 31st December of the previous year. It will also have details like the tax deducted PAYE, USC and Local Property Tax. In Ireland, there are 4 tax periods – 1st January to 15th February, 21st April to 10th June, 18th August to 29th September and 24th November till the next tax year period. Section A(3) in the form should only be used when submitting the details for the tax period of the employee form 24th November onwards. Sections A(1) and B(1) should only be used when the employee has worked the whole year. Other relevant details include –
- Total exempt from PRSI and USC
- Payment frequency - daily, weekly, fortnightly, monthly.
- Local Property Tax deducted during the stay of the employee in the firm
- Total employer and employees PRSI
- Initial social contributions
- Total tax deducted in the previous year (if applicable)
- Claim refund on USC
The employer receives an end of the year package from the Office of the Revenue Commissioners which includes other form – P35. The employer then shares the P60 with the employee. In Ireland, P35 is more important than P60 as the former encompasses all the details related to income and tax deductions.
What to do if you have lost P60?
If you have lost P60 then you should write to your current employer. The employer will generally have a copy of it. If not, then they can download it from their payroll software or ask for the same from HMRC. There is no extra charge for getting a new P60 as it is readily available and the accountant can download it at any time. If you are director of a limited company, then you can download it yourself.
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