What's a P60?
A P60 form, or "End of Year Certificate," is a document that provides you with a summary of your earnings, tax deductions, and National Insurance contributions (NICs) for a specific tax year (running from 6th April to 5th April the following year).
If you're an employee or receive a pension in the UK, your employer or pension provider is legally obliged to provide you with a P60 form within 45 days after the end of the tax year, which means you should receive it by 31st May.
You get a separate P60 for each of your jobs every tax year.
When are P60s issued?
P60s are issued by the 31st May of every year.
Once that's happened, you'll receive an email and can find it under your Documents in your Onfolk profile.
The pay amount seems slightly lower than I expected
The pay amount on your P60 is your taxable income.
This can be different from your total income. A common reason for this is when pension contributions are deducted from pay before tax.
Why is a P60 Important?
A P60 form serves multiple purposes, including:
Proof of income: Your P60 provides a detailed summary of your income during the tax year, making it useful for applications such as mortgages, loans, and rental agreements.
Tax reconciliation: it helps you verify the amount of income tax and NICs deducted from your salary, ensuring that you have paid the correct amount. It can also aid in claiming any tax overpayments or rebates you may be entitled to.
Record-keeping: a P60 enables you to maintain accurate records of your financial history, which can be beneficial for tax planning or in the event of an audit by HM Revenue and Customs (HMRC).
Tax returns: If you need to file a Self Assessment tax return, your P60 serves as an essential source of information regarding your employment income, tax deductions, and NICs.
Benefits claims: Some government benefits require you to provide your P60 as proof of your income, helping to determine your eligibility.
It is essential you store your P60 forms in a safe place, as they serve as important records of your financial history. Keep them for at least 22 months from the end of the tax year to which they relate. This duration is necessary because HMRC may investigate your tax affairs up to 20 months after the end of the tax year in question.
Understanding Your P60 Form
When you receive your P60, make sure to review its contents carefully. The form will include the following details:
Your personal information: This includes your name, address, National Insurance number, and tax code.
Taxable income: The portion of your income subject to income tax (this may be lower than your total earnings due to tax allowances or reliefs. Pension amounts are typically not a part of this number)
Income tax deducted: The total amount of income tax withheld from your salary throughout the tax year.
NICs deducted: The total amount of NICs deducted from your salary during the tax year.
Additional details: Other information on your P60 may include student loan deductions, Statutory Maternity Pay, or Statutory Paternity Pay, among others. Ensure that all these details are accurate and up-to-date.
The difference between a P45 and a P60
A P60 is an end-of-year summary of your income, tax deductions, and NICs for a specific tax year.
A P45, on the other hand, is a document you receive when you leave a job. It provides details about your income and tax deductions up to the point of leaving that job. You'll need to give your P45 to your new employer to ensure you're taxed correctly in your new position.
What happens if I work multiple jobs?
Each of your employers will give you a separate P60 which will detail the tax paid on the salaries they paid you. So if you work 2 jobs, you'll get 2 separate P60s.
Where can I find my P60 in Onfolk?
In Onfolk you'll find your P60 in the Documents section of your profile - link here.
What if my P60 isn’t correct?
If you find any discrepancies or errors in your personal information, income, or deductions, inform your employer or pension provider immediately. They are responsible for correcting any mistakes and providing you with an updated P60.
I’ve not yet been given a P60 or my P60 is late
If you haven't received your P60 by 31st May, contact us or your employer to inquire about the delay.
Can I get a P60 for previous years?
If you need a P60 for a previous tax year, first contact your employer or pension provider. If they cannot provide a copy, request a replacement from HMRC. Note that HMRC can only provide a replacement P60 for the past six tax years.