What is a P60?
A guide for businesses, large and small.
Who gets a P60?
Every employee working for you on the last day of a tax year (5 April) has to be given a P60. They must receive it by by 31st May of that calendar year and it can paper or electronic.
What’s it show?
It summarises their total pay and deductions (Tax, National Insurance along with other deductions such as Pension contributions, Student Loan repayments etc.)
It is an official document and must be provided.
How to read a P60?
A P60 will include the following information and the employer (you) and your employees:
- Employee National Insurance Number
- Employee & Employer details
- Employer’s PAYE reference
- Any statutory maternity, paternity, shared parental or adoption pay
- Total amount of student loan deductions made during the tax year
- Total annual pay, tax deducted and final tax code
Check your P60.
You should always check your P60 to make sure it is correct and you or your employees haven’t been paying too much tax.
If too much tax has been paid, the P60 can be used to claim a tax refund. Some of the most common reasons for overpaying tax are:
- being put on an emergency tax code when starting a new job, usually if you didn’t get a P45 issued when you left your last job.
- starting a second job.
- a change in your personal circumstances, i.e. moving from full time to part time work.
Employees can clai a refund of overpaid tax from HMRC after the end of the tax year in which they overpaid. They will need to provide details, including National Insurance Number, Employer’s PAYE reference and details from the P60.
This can all be done online at https://www.gov.uk/claim-tax-refund
At Nazman Accountants
We can run your payroll services so you don’t have to worry about the headaches of ensuring that you pay the right amounts to the right people, including HMRC. Call us on (01274) 736000 for an appointments to discuss what we can do for your payroll.