Frequently asked questions about P60s
By: Claire, redwigwam
It's almost the end of the financial year, which means if you are employed, you'll receive a copy of your annual P60 at some point before 31st May.
Understanding your P60 can be confusing, and the purpose of this document can be misunderstood.
To help, here are answers to some frequently asked questions about P60s.
Frequently asked questions about P60s
Are p60 and p45 the same
The P60 and P45 are both documents issued by employers in the United Kingdom.
The P60 is an end-of-year tax document which summarises your total income and deductions from the previous tax year. It also shows the amount of tax you have paid throughout the year.
The P45 is a document issued to employees when they leave a job. It shows the employee’s income, tax and National Insurance deductions for the period of time they were employed with that particular employer.
The P45 also serves as a record of earnings when transferring to a new job.
Both documents are important for tax and financial records, but serve different purposes.
How long should I keep a P60?
Your P60 is an important document and it's important to keep it safe.
Generally, you should keep your P60 for a minimum of 3 years, as it can be needed if you need to complete tax returns or make a claim against the PAYE system.
Even if you don't think you'll need it, it's best to store it somewhere safe just in case to ensure you have access to it should you need it!
Who sends my P60?
The P60 document (also known as an End of Year Certificate), is issued by your employer and sent to you at the end of each tax year.
It contains important information regarding your salary and deductions over the course of the tax year. It’s essential to have a P60 as it will help you file your tax return and keep a record of your income.
Your employer is required by law to send you a P60 and will usually issue them at the end of the tax year.
If you haven't received your P60, contact your employer and they will be able to provide you with a copy.
Why is my P60 important?
Your P60 is an important document provided by your employer at the end of each tax year.
It’s proof of the income you earned, tax deducted and any other deductions or allowances. It’s vital to keep this document safe and secure as it can be used for a variety of reasons, including claiming back overpaid tax, verifying your salary with a bank or mortgage lender, or as evidence of your income for other official documents.
In addition, you may need to produce your P60 when you make a claim for certain tax reliefs, such as mortgage interest relief or rent relief.
It is important to keep your P60 in a safe place as you never know when you might need it.
When is a P60 issued?
A P60 is an annual tax certificate issued to employees in the UK by their employer at the end of each tax year.
It is issued to verify the amount of income tax and National Insurance the employee has paid over the course of the year.
A P60 is issued no later than 31 May following the end of the tax year and should be given to each employee who was on the payroll on the last day of the tax year.
This document should also be kept by the employee for their own records as proof of income in case of any tax enquiries from HMRC.
What if my P60 is wrong?
If you notice any errors or discrepancies on your P60, it's important to take action right away.
First, double-check the details you've provided on the form to make sure the errors aren't a result of any mistakes on your part. If the errors appear to have been made by your employer, reach out to them and let them know.
If your employer is uncooperative or if you're unable to resolve the issue on your own, you can contact HMRC and inform them of the situation. They can help you make sure your P60 is correct and ensure that you're not paying too much or too little tax.
Taking these steps can help you ensure your P60 is correct and that you don't experience any issues with the HMRC in the future.
Can I get a copy of my P60?
If you'd like to get a copy of your P60, you should contact your employer. Your employer is legally required to provide you with your P60 document each year, either electronically or by post.
It’s important to keep a copy of your P60 as it is evidence of your earnings and any deductions, such as tax and national insurance, that have been taken. You may also be asked to provide a copy of your P60 when applying for credit or for a mortgage.
P60s and redwigwam
If you have been paid for any work with redwigwam in the last tax year (a UK tax year runs from 6 April to the following 5 April) you will receive a P60 from us.
Remember, redwigwam is your employer so you will receive your P60 from us, which covers all jobs you have completed in the tax year.
If you have any questions about your P60, please email firstname.lastname@example.org and one of the team will be happy to help you out.
Why have I received multiple P60s?
If you are on daily pay (or have been on daily pay at some point in the current tax year) you may receive more than one P60 from redwigwam.
This is as a result of how we need to run our daily payroll (and we're sure you'll agree getting paid daily is a huge advantage of working with redwigwam - we're one of the only companies in the UK who offer it).
If you do receive more than one P60, please don't panic - simply keep copies of all of them so you have all your tax information as and when you need it.