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Contents

  1. 1. How do I get a P60?

How do I get a P60?

August 5, 2021
A P60 form, otherwise known as an end of year certificate, is a document that all employees are given at the end of each tax year. It contains relevant tax information that can help you apply for loans, claim tax rebates and apply for a mortgage. The P60 form lists an employee's total pay and any tax deductions that have been made. You will be able to see a breakdown of the taxes that have been paid, such as Pay As You Earn (PAYE), National Insurance contributions and student loan payments. All employers are legally obliged to fill out a P60 form for their employees. The form should be issued after 5th April, although the exact release date will vary between companies. However, all companies need to give out the P60s by 31st May.You will need to keep your P60s safe as they contain sensitive information. Her Majesty’s Revenue and Customs (HMRC) advise that you keep P60s on file for several years after they were issued for future reference.

How do I get a P60?

Employers issue P60s to their employees at the end of each tax year. Every employee needs to be given a P60 annually so that they can check that they are paying the correct amount of tax. These forms may be sent on paper or electronically (such as via email).HMRC does not send out P60s, so it is up to the employer to process the documents with information from the payroll. Some payroll software can produce P60s, or employers can contact their payroll accountant for advice on how to produce a P60.Employers need to keep a copy of each employees' P60 for around three years. You can request a replacement document if you have lost the original copy, but it is at the employer's discretion to supply one. The replacement document will be labelled as a duplicate. You won't receive a P60 if you have left employment within the tax year. Instead, you will be given a P45, which will contain the same tax information. You will need to give this document to your next employer.

What is a P60?

The information on the P60 form features the tax that has been deducted from employees' salaries throughout the year. This includes National Insurance contributions, student loan payments and PAYE.It is a very important document to keep safe as it contains sensitive information and can be used for financial applications (such as loans). Be sure to keep it in a filing cabinet or scan it and save a copy for future reference.The sections on a P60 are as followed:
    Employee nameNational Insurance number and National Insurance contributionsGross pay (salary before deductions) All tax that has been deducted (including PAYE)Statutory pay (sick pay)Student loan deductions (if applicable)Pension contributions

Why do I need a P60?

You can still apply for things such as mortgages without a P60, but you will need to compile the relevant information yourself, such as income statements and previous payslips.P60s can show if you've been overpaying tax. You may find that the reason for this is an incorrect tax code. It's recommended that you keep your four most recent P60s for future reference so that you can spot any future tax discrepancies.Your tax information may not be on record at the tax office. This means that you will need to provide your P60 as evidence if you are requesting a tax refund or tax rebate. You may be unable to validate the refund if you don't have proof of how much tax you should be paying or are overpaying.

Will I receive more than one P60 if I have multiple employers?

Every employer needs to supply their employees with a P60. You can receive more than one P60 per tax year if you work multiple jobs at the same time. For example, you may work two days at one job and three days at another company, so you will need a P60 from both employments. The total amount of tax you'll pay will be different if your salary varies in your different jobs. Your employers won't have any form of communication to discuss your P60 so they will produce the form based on the information they have on file for your job within their company.You will need to consolidate your earnings so that HMRC can place you in the right tax bracket. It's important that you are paying the correct amount of tax for your various jobs, which is why you need to keep your P60s in a safe place.You need to list the details of all of your employers to complete your Self Assessment. Your P60 can help HMRC to see how much you have earned if you are self-employed in addition to working another job. If you work through an umbrella company, they will issue you with your P60 instead of the company that you directly work for.

What should I do if my P60 information is wrong?

Your P60 may contain incorrect information because of mistakes made by HMRC or your employer. If you think that your P60 is wrong, you should tell your employer. Your employer might contact HMRC on your behalf or you'll need to contact them. HMRC deems it your responsibility to notify them of any mistakes, even if it was a mistake made by them.You may end up paying penalties if you underpay tax. Even if HMRC don't issue any penalties, you will still be expected to repay the tax you owe as soon as possible. Those paying tax through Self Assessments must be especially careful because even the smallest error could warrant an investigation and penalties from HMRC.When notifying HMRC about your P60, you need to give as much detailed and truthful information as possible so that they can correctly calculate the tax based on your earnings. Your tax code may change because of the information you provide.It's helpful if you can work out where the miscalculation occurs so that HMRC or your employer can be notified and alter it. You will then get a replacement P60 form with the correct information. HMRC might automatically refund overpaid tax, or they will do it after you have filled out a refund application. There is a time limit of when you can claim for overpayments, so you need to keep an eye on your payslips and P60 when they are issued. You can backdate tax rebates up to four years ago.

Do limited companies need P60s?

All employers need to supply P60s to staff members that are on the company books on 5th April. If you are the owner of a limited company and pay yourself a salary, you will need to issue a P60 to yourself too. This is because you will still pay tax through PAYE and your P60 can show the various deductions. You can still process your own P60 in the same way as your employees'. Any dividends that you receive won't be listed on your P60. Instead, the dividends will appear on your Self Assessment form and consequently your SA302 form. At Ember, our payroll feature can automatically issue you with a P60 report for each of your employees, and also allows you to contact a qualified accountant if you need any support filling out the P60 forms. It is your responsibility to make sure that your employees' details are correct and up to date. Some payroll providers will help keep the records, give out payslips and make payments to HMRC on your behalf.

Do sole traders and self-employed workers need P60s?

Although you won't receive a P60 if you are self-employed, your tax information will be on your Self Assessment form. This will include the same information that would be on a P60. HMRC will generate an SA302 form based on your Self Assessment, which will serve as a replacement P60. You can use the form if you need evidence for things such as mortgage applications. The SA302 form will contain information from your tax payments from the last four years.

How do employers file P60s?

HMRC doesn't send out P60 forms, so it's your responsibility as an employer to keep copies of the P60s. It's advisable to keep copies of the P60s on file for at least three years in case you need them in the future. You may need to give your employees a replacement copy of their P60 if they lose the original. You cannot give a replacement P45 form however. If you are exempt from filing your payroll online, you can contact HMRC to give you copies of your employees P60s. You can apply to be exempt if there are exceptional circumstances, such as religious beliefs or ill health. You can also apply for exemption if you don't have access to the internet or 'dial up'. HMRC will expect you to give valid reasons why you cannot process your company's payroll online. This will also include an explanation of why you cannot use a payroll accountant to do the online submissions on your behalf. You will need to notify your employees that you only file information on paper as some may wish for an electronic version.

Are there penalties for issuing late P60s?

It's important that you issue a P60 before the deadline, otherwise your company will face penalties if the forms are sent out late. HMRC can issue a fine of £300 for the initial late issuing. They will then charge an additional £60 for each following day until the P60 forms are sent out.You can keep track of the P60 deadline through our payroll software. It can auto-generate P60s after the last payroll of the financial year (in March). You can also access all of your employees' payslips and generate P45s if any of your employees leave during the tax year.
Cam Finney
Cam FinneyHead of CX

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