What Does Your P60 Mean?

When in full-time employment you may notice that at the end of each year you receive a form from your employer titled ‘P60’. And you may not have taken much notice of what is on it. However, you should. Today we are going to cover what exactly a P60 is and what you should be checking for on it.

What is it?

In a nutshell, it’s a form that explains how much tax you have paid in that tax year for your employer. It’s important to keep such a document as if you go to apply for things such as mortgages you may be required to show your P60 as proof of your salary.

When are they sent out?

P60’s are sent out each year following the tax year which finishes on 5th April. However, due to processing times varying you can expect to wait anywhere up until the end of May to receive yours from your employer.

The reason for the delay is that these documents are automatically generated by HMRC and then sent to your employer who is then responsible for sending these documents out to you.

Why you should check yours

However, just because they are automatically generated by HMRC doesn’t mean that they can always be right. That’s why it’s important to have a copy of each of the individual payslips that you have received throughout the year and to cross-check these against your P60.

If you notice any errors

As we’ve mentioned already when you get your annual P60 it may not always be right. If, after cross-checking and examining yours against your payslips, it later develops that there are discrepancies, you should, at the earliest opportunity, let HMRC know about this.

What if I’m self-employed?

If you’re self-employed, you may not receive your P60. The reason for this is that it is automatically generated by employers. However, you still need, for many reasons, to have a record of how much tax you’ve paid over that particular year. Thankfully, there is an SA302 form that is able to show the evidence of what tax you’ve paid for the previous 4 years.

What if I can’t find my P60?

Due to how important they can be for many reasons, such as documentation that may be needed for mortgage applications, you should always keep them safe. If for any reason you have lost yours if you get in touch with your employer they should be able to provide a replacement for you.

Want to know more?

If you want to know more about the importance of P60’s and what you should be looking for on yours. Get in touch with a member of the team here at D&K Accounting, your profit-first professionals.

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