How does a p60 work?

Question

How does a p60 work?

Answer 1

If you were employed for the whole tax year, the P60 is a certificate of your pay and tax details for that tax year. It is generally just for your information, but can be used to make a repayment claim if you have been on wrong tax code or can also be used if you have to have a proof of your income (for a loan or mortgage etc.)

Answer 2

To simplify: Your P60 is your proof of the tax and national insurance you have paid during any given tax year.

Your employer will send a copy to HMRC, known as a P14, but this may be done electronically and no copy exists on paper.

You need to keep your P60 safe, then if the tax man ever sends you an assessment form, or tries to say you owe some more tax, you have your proof of what you have paid.

Answer 3

Well, it picks up a spade, rolls up its sleeves, and marches off, singing, "Hey ho, hey ho, it's off to work I go....."

A form P60 is given to you by an employer with whom you are in employment on 5th April, the end of the tax year. It is a legal document, thus should be retained carefully, as it is your documentary evidence of the pay and tax that has been deducted from you in that tax year. It is a copy of what your employer tells HMRC about you and your earnings.

You may have to produce it if you want to claim a tax refund, or HMRC has queries about you. If you want a mortgage or a bank loan you will have to produce it as evidence of your income to the lender. It is a piece of evidence of identity for banks or other companies needing that. You will also need to show it if you need to claim various Government benefits.

Answer 4

a P60 is a summary of what you have been paid (and the tax / NI etc deducted) by your employer in the previous tax year. its similar to a P45, except that a P45 is issued on you cessation of employment with that employer.

it has little relevance inthe modern world, it probaby was usefull years ago prior to the introduction of computerised payroll and automated data exchange between your employers and the revenue