A P60 is an ‘end of year certificate’ that summarises an employee’s total pay and deductions for a tax year. They are issued once a year by an employer to all employees that were employed on 5th April.
A P60 shows how much an individual earned in a tax year (6th April to 5th April) and breaks down the Income Tax and National Insurance deductions for that employment. They are produced by employers and need to be issued to employees before 31st May.
Once issued, a individual needs to keep their P60 safe. It is evidence of tax paid and is an important document that maybe required a later date, for example when completing a Self Assessment Tax Return or applying for a mortgage.
Checking a P60
Employers and employees should check their P60s before they are issued / filed away. Sometimes employers records may not be up to date which should be corrected at the earliest opportunity.
We recommend that employers and employees complete the following checks on P60s:
- Employee’s details – are names spelt correctly and is the National Insurance correct and shown in full
- Pay and Income tax details – are the total pay figures for the tax year correct (should match last payslip of tax year)
- National Insurance contributions – is the employees NIC table letter correct
- Statutory payments – if there were any statutory payments made to the employee, are they shown and correct
- Other details – If any student loan payments were deducted, are they shown and correct
- Employees address – is the employees home address correct
- Employers details – are the employers name, address and PAYE references correct