What is a P60?
A P60 form is a statement or certificate showing how much you have earned, and the amount of tax you have paid in the last tax year.
A P60 tax refund is a repayment of income tax because you have paid too much. The figures on the P60 will show whether you’ve paid too much tax against the income you have had.
How do I get a P60?
The employer you’re working for at the end of the tax year should give you a P60 form. The tax year ends on the 5th April each year, so you normally get it in April or May. You will only get one if you are employed at the end of the tax year. If you leave your employer before the end of a tax year, you will receive a P45 instead of a P60.
How do I claim a P60 tax refund?
A tax refund may be owed to you after a tax year ends. If you feel that your P60 figures indicate that you have overpaid income tax and you have not had any other income during that tax year it is likely that HMRC will refund any overpayment automatically.
HMRC will send you a P800 explaining the overpayment and you can reclaim the refund online or receive a cheque through the post.
The tax office can be contacted via phone on 0300 200 3300 or online if need them to answer any queries relating to your P60.
Understanding your P60
Knowing how to understand a P60 is useful. The main figures that make up your P60 are:
- Total pay: How much income you’ve earned from your employer.
- Total tax deducted: The amount of income tax taken from you by the employer issuing the P60.
- National Insurance contributions: The amount of NI contributions made in the year.
- Total pay from any previous employment.
- Total tax deducted from previous employment.
- Statutory payments made such as maternity and paternity pay.
- Final tax code as used by the employer issuing the P60. Your PAYE tax code is important and if wrong can result in you paying the incorrect amount of income tax. Our PAYE tax code guide can help you find out more.
- Student loan deductions.
When understanding a P60, it’s a good idea to check the figures entered are correct, because if they’re wrong you could be paying too much income tax.
Why is my P60 important?
Your P60 form is extremely important, and it’s recommended that you keep all of your P60 forms for the last four tax years. Reasons why you might need your P60 form include:
- Sometimes your P60 details are not on record with the tax office. If this is the case and you apply for a tax refund or a tax rebate, the money you are owed cannot be paid until your P60 has been located. Providing a P60 to the tax office will mean your record can be updated quickly and your tax rebate issued.
- Applying for credit, for example when applying for a mortgage, will often need you to provide proof of earnings, like a P60 form.
- If you complete a self assessment tax return and have income under PAYE you will need your P60 to complete the employment page on your tax return. You will need the gross pay, tax paid, employer PAYE tax reference number and name which is shown on your P60.
I’ve lost or not been given a P60. What should I do?
If you have not been given a P60 form from your employer, you can ask for a statement of earnings which details the same information, and can be used as a direct replacement for a P60.
You can also retrieve your P60 information from your online personal tax account or you can call HMRC and ask for an employment history letter to be posted to you. The quickest and easiest way is to download your P60 from your personal tax account.