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What Is A P60?

A P60 is an essential document in the UK tax system, but many people aren’t sure what it is, what it’s for, or why they need it. Whether you’re employed or managing a business, understanding the role of a P60 is key for staying on top of your taxes and ensuring everything is in order with HMRC. On this Post we will dive into what is a P60 and if you are still unsure you can alway contact us for a quick chat.

what is a p60

Questions and Answers

What is a P60?

A P60 is an official document issued by your employer at the end of each tax year. It provides a summary of your total earnings and any deductions made from your salary over the course of the year, including:

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  • Income tax paid

  • National Insurance contributions

  • Student loan repayments (if applicable)

  • Other deductions (e.g., pension contributions)

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Essentially, the P60 gives you a complete record of how much you’ve earned and how much tax has been deducted. This document is vital for reviewing whether you’ve paid the right amount of tax for the year, as well as for other financial matters.

When Do You Get a P60?

Your employer must issue your P60 at the end of the tax year, which runs from 6th April to 5th April of the following year. Employers are required to give you your P60 by 31st May at the latest.

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You’ll only receive a P60 if you were employed on the last day of the tax year. If you left your job before the end of the tax year, you should have received a P45, which provides similar information but is issued when you leave a job.

Why is a P60 Important?

What is a p60 and why is it Imortant? Your P60 is essential for a variety of financial and legal reasons. Here are some of the key uses:

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  • Tax Rebates: If you’ve overpaid tax during the year, your P60 is the document you’ll need to claim a tax rebate from HMRC. It shows how much tax you’ve paid, making it easier to calculate whether you’re due a refund.​

  • Proof of Earnings: You’ll often need your P60 when applying for a mortgage, loan, or benefits, as it provides official proof of your earnings over the year. Financial institutions and government agencies may ask for your P60 to verify your income.

  • National Insurance Contributions: Your P60 helps ensure that your National Insurance contributions are correctly recorded, which is important for your state pension and other benefits in the future.

  • Student Loan Repayments: If you’re repaying a student loan, your P60 shows how much you’ve paid toward your loan. It’s essential for checking whether your repayments have been accurately calculated.

What to Do If You Don’t Receive Your P60

If you don’t receive your P60 by the end of May and you were employed on the last day of the tax year, you should contact your employer immediately. It’s their responsibility to provide you with this document.

What Should You Do With Your P60?

Once you receive your P60, it’s important to store it safely. HMRC recommends keeping tax records, including your P60, for at least 22 months after the end of the tax year. You may need it for:

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Digital P60s

In recent years, many employers have shifted to providing digital P60s, which you can access through your company’s HR system or payroll portal. A digital P60 is just as valid as a paper one, and you can save it on your computer for safekeeping.

How is a P60 Different from a P45?

While both the P60 and P45 are tax documents, they serve different purposes. A P45 is issued when you leave a job and provides details of your earnings and tax paid up to your leaving date. A P60, on the other hand, is issued at the end of the tax year and summarizes your total earnings and deductions over the entire year.

How Can Ultra Tax Ltd Help?

If you’ve lost your P60 or need help understanding how it affects your taxes, Ultra Tax Ltd is here to help. We can assist you in navigating tax rebates, reviewing your P60 for missed deductions, and ensuring that your tax affairs are in order.

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Our tax rebate calculator can also give you an estimate of how much you might be owed if you've overpaid tax during the year. Start your tax refund process with Ultra Tax Ltd today, and get back what you’re entitled to.

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