If you’ve been employed, chances are you’ve heard of a P60 form. The term gets thrown around and working out what it means based on the code alone is impossible! So, we’ve put together a little guide to talk about what a P60 is and whether or not you need one.
What is a P60 form?
P60 forms essentially show exactly how much tax you’ve paid on your salary during the tax year (6th April until the 5th April of the following year). If you’re working multiple jobs, you’ll get a P60 for each job you work.
Having a P60 is pretty important as it serves as evidence for how much tax you’ve paid. This way, if you have to claim back tax that you’ve overpaid or apply for tax credits, then you can use your P60 as evidence of how much you’ve paid. You can also use your P60 to serve as proof of your income if you’ve applied for a mortgage or bank loan.
Your P60 will detail a range of information and might look a bit overwhelming! On the form, it’ll show all the wages you’ve earned from your current or past employment during the tax year. As well as this, it will also detail all the deductions made by HMRC for both Income Tax and National Insurance contributions. If you have an outstanding student loan, your P60 will also show this information, too!
Do I need a P60 Form?
In short, yes you definitely do! Like we mentioned about, you can use your P60 as evidence for your salary and tax contributions for the fiscal year. So, make sure you keep hold of yours when it comes!
When 5th April at the end of the tax year comes around, if you’re receiving a salary then you should get your P60 before the 31st May. In circumstances where you run your own limited company and take your salary out of your business, you’ll need to issue yourself with a P60. Count can help you with this! If you’re a sole trader, on the other hand, you won’t need to give yourself a P60. However, you’ll need to issue P60 forms to your employees.