P60 form

Definition

The P60 form is a tax document issued annually in the UK by employers to their employees at the end of the tax year. 

What is a P60 form?

A P60 form provides a summary of an individual’s total earnings, tax deductions, and National Insurance contributions for the tax year.

The P60 form includes essential information related to an individual’s income and taxes for the tax year, such as:

• Employee’s name and National Insurance number
• Employer’s name and PAYE reference number
• Total earnings before tax
• Total tax deducted
• Total National Insurance contributions deducted
• Details of any statutory payments received
• Tax code and tax period covered by the form

Employers are required by law to issue a P60 form to each of their employees who are employed on the last day of the tax year. The P60 form must be provided to employees no later than May 31st following the end of the tax year.

Employees may use the information provided on the P60 form to complete their annual self-assessment tax return, which is required for individuals with certain types of income or tax liabilities. It may also be used as proof of income and tax paid when applying for financial products or benefits, such as loans, mortgages, or tax credits.

Employers are required to retain copies of P60 forms for their employees as part of their payroll records for at least three years following the end of the tax year. Failure to issue P60 forms or maintain accurate records may result in penalties imposed by HMRC.

Example of a P60 form

Employee details:

• Name: John Smith
• National Insurance number: AB123456C

Employer details:

• Employer name: ABC Company Ltd
• PAYE reference: 123/ABC456

Summary of income and deductions for tax year:

• Total earnings before tax: £30,000
• Total tax deducted: £5,000
• Total National Insurance contributions deducted: £2,500
• Tax code: 1250L

Statutory payments received:

• Sick pay: £500