WHAT IS A P60 FORM? WHAT DETAILS IT CONTAINS AND WHY SHOULD YOU SAVE IT

Many people often ask, “What is a P60 form?” As for HMRC is concerned, Form P60 is the documented proof of what you earned and how much tax you have paid. P60- alternatively called the End of Year Certificate is issued to each employee by their employers. This form will contain the exact data for your Gross Pay, Pay as You Earn (PAYE) and annual National Insurance Contributions (NIC). It is always wise to keep your P60 available in case you face any tax discrepancy with HMRC. Without a P60, you cannot claim back an overpaid amount of taxation from HMRC Tax office.

Practically speaking, P60 has been the third part of P14 (End of Year Summary). P14 part one was for use of HMRC officials. Once completed, it was forwarded to the Contributions Office. P14 part two was kept with the tax office where your employer PAYE scheme was listed. Part three of P14 was the P60 form. It was and is retained by you- the tax payer.  It has never been referred to as formally part three of P14. As of the beginning of 2013/2014 tax year, P14 part one and two have been declared redundant. The P60 form, however, continues to exist!

Things that you should know about P60:

1. It is the End of Year Certificate
2. Your employer must provide you the form by 5^th April of each year.
3. P60 is kind of your income tax summary for HMRC reference.
4. It is your responsibility to report any mistake of your P60 to HMRC.
5. You will need to provide this form when you apply for a mortgage, a property rental or any other banking/financial services.
6. You should always save your P60. HMRC tax systems have minimum human interaction. Some minor errors can end up in huge fines. Your P60 will be your sole proof!
7. For employers, it is compulsory to issue a P60 to all employees who continue to work with them at year end date.

Are you still not clear about what is a P60? At Certax London, we have experienced professionals who can guide you what is a P60. Whether you are an employee or an employer, we can help you with your Tax payments and management with HMRC.