Understanding P60: Your Ultimate Guide to This Important Payslip Document
Introduction:
If you are a UK taxpayer, you have probably heard of a P60 before. This important document is issued to employees at the end of each tax year and shows how much they have earned and how much tax they have paid. Despite its importance, many people are unsure about what a P60 is and why they need it. In this article, we will take a deep dive into everything you need to know about P60s.
What is a P60?
A P60 is a summary of your pay and the tax you have paid throughout the tax year (which runs from 6 April to 5 April the following year). It shows your total income and the amount of tax and National Insurance contributions deducted from your pay.
How is a P60 different from a payslip?
While a payslip shows your earnings and deductions for a particular pay period, a P60 summarises your earnings and deductions for the entire tax year. You should receive a P60 from your employer by 31 May following the end of the tax year.
Why is a P60 important?
A P60 is an important document that you may need for various reasons, such as:
- Claiming back overpaid tax
- Applying for a mortgage
- Applying for a loan
- Applying for tax credits
- Providing proof of income to a landlord
How to read and understand your P60
Your P60 will contain various information, including:
- Your name, address, and National Insurance number
- Your employer’s name and address
- Your total income for the tax year
- The total amount of tax deducted from your pay
- The total amount of National Insurance contributions deducted from your pay
When you receive your P60, make sure to check that all the information is correct. If you find any errors, you should contact your employer as soon as possible to get them corrected.
FAQs
Q: What should I do if I lose my P60?
A: If you lose your P60, you should ask your employer for a duplicate copy. Alternatively, you can use your payslips or your tax code to work out your total income and tax paid for the year.
Q: Can I get a P60 if I leave my job during the tax year?
A: Yes, you should still receive a P60 from your former employer. If you have worked for more than one employer during the tax year, you should receive a P60 from each of them.
Q: Can I access my P60 online?
A: Some employers may offer online access to P60s. If you are unsure, you should check with your employer.
Conclusion:
A P60 is an essential document that shows how much you have earned and how much tax you have paid during the tax year. It is important to keep your P60 safe, as you may need it for various purposes in the future. If you have any questions about your P60, don’t hesitate to contact your employer for more information.
