Understanding the UK Tax Year
In the UK, the tax year begins on 6 April and ends on 5 April of the following calendar year. This fixed cycle determines when employers must report income and tax deductions, and when forms like the P60 are generated.
At the end of each tax year, employers must prepare and distribute P60 forms to employees who are paid via the PAYE system. This is the method by which Income Tax and National Insurance Contributions are deducted directly from wages or salaries.
The purpose of the P60 is to provide employees and pension recipients with a detailed breakdown of their taxable income and the deductions that have already been made by their employer or pension provider. It also includes statutory payments like sick pay or maternity pay if applicable and helps ensure transparency between individuals and the tax authority.
What Is a P60?
The P60 is an annual statement that summarises an individual’s total pay and the tax that has been deducted during the previous tax year. It is issued by employers to employees who are on their payroll and who were still employed at the end of the tax year. Those who have retired and are receiving a private or workplace pension also receive a P60 from their pension provider.
This document is crucial because it acts as a formal record of what you have earned and how much tax you have paid. It is often required for financial applications, claiming tax refunds, or completing a Self Assessment tax return.
A P60 includes a range of personal and financial information such as:
- Full name of the employee
- National Insurance number
- Payroll or employee number
- Tax code used during the year
- Employer PAYE reference number
- Total pay for the year
- Total Income Tax paid
- Total National Insurance paid
- Any statutory payments received
- Any student loan repayments deducted via payroll
Each of these components provides a complete overview of an individual’s tax situation for that particular year. Reviewing your P60 is an important annual task to ensure everything has been recorded correctly.
Who Should Receive a P60?
Only individuals who are paid through the PAYE system receive a P60. This includes:
- Full-time employees
- Part-time workers
- Temporary staff
- Pensioners receiving private or occupational pensions
The key point here is that the income must be processed through PAYE. This means that your employer or pension provider is responsible for deducting tax and National Insurance from your earnings and then passing that information to HMRC.
People who are self-employed and earning income independently do not receive a P60. Instead, they are required to report their income and calculate tax through the Self Assessment process, using forms like the SA100 tax return.
If you held more than one job during the year and were employed by multiple employers, you should receive a separate P60 from each employer, as each one is responsible for their own payroll reporting. The same applies to individuals who are drawing income from more than one pension source.
When Should You Expect to Receive Your P60?
Employers are legally obligated to issue P60 forms to employees by 31 May following the end of the tax year. This means if the tax year ends on 5 April, you should receive your P60 by the end of May. The document may be provided in paper form or delivered electronically through a secure digital system or employee portal.
If you do not receive your P60 by this deadline, it’s important to contact your employer as soon as possible. Delays can occur due to administrative issues, but it is ultimately the employer’s responsibility to provide this documentation on time.
Employees should not assume that the form will arrive automatically in the post. Depending on how your company communicates pay and tax records, it may be emailed or made available for download. Check your payslip portal or speak with your HR or payroll department if you are unsure.
Why Is Your P60 So Important?
Your P60 is not just a summary of tax deductions. It plays an essential role in various aspects of your financial life. The most common uses for a P60 include:
Claiming a Tax Refund
If you believe you have overpaid Income Tax during the year, you can use your P60 to support a claim for a refund. Overpayments can happen for several reasons such as working only part of the year, changing jobs, or being on the wrong tax code.
Your P60 shows exactly how much tax you paid through PAYE and how much income you received, allowing HMRC to determine if a refund is due. Without this form, making a tax claim can be more complicated and time-consuming.
Applying for Loans, Mortgages or Rental Agreements
Lenders and landlords often require proof of income to assess your financial stability. Your P60 serves as official verification of your annual earnings and tax status. It is considered a reliable and trustworthy document because it is issued by an employer and cross-referenced with HMRC records.
Whether you’re applying for a personal loan, car finance, or mortgage, having access to your P60 makes the application process smoother. Some agencies even require it as part of your documentation checklist.
Supporting Tax Credit and Benefit Applications
If you are applying for tax credits or other government benefits, the amount of income you earned during the tax year is a crucial factor. The figures on your P60 provide proof of your eligibility and help authorities calculate the level of support you may be entitled to.
It’s important that the information reported matches your P60 exactly to avoid delays or complications. Discrepancies can result in underpayment or overpayment of benefits, both of which can be problematic to resolve.
Completing a Self Assessment Return
If you earn income outside your PAYE employment — such as freelance work, rental income, or capital gains — you will need to complete a Self Assessment tax return. Even though the P60 only covers PAYE earnings, it is still essential for reporting your total income accurately.
The figures from your P60 can be entered directly into the relevant sections of your return, ensuring that HMRC receives a complete overview of your earnings. This helps prevent errors and ensures compliance with reporting obligations.
What Should You Do If You Lose Your P60?
Losing your P60 is not the end of the world, but it’s something you should try to avoid. These documents are often required months or even years after they are issued. It’s best to store them safely in a digital or physical folder along with your other financial records.
If you do lose your P60, the first step is to contact your employer. Most employers can issue a duplicate or print another copy from their payroll software. You may need to verify your identity and employment details before a replacement is provided.
If your employer cannot help or if you need access immediately, you can log into your personal tax account online. This HMRC service allows you to view and download key information about your earnings and tax deductions. The data available is equivalent to what would appear on a P60, even though it may not be formatted the same way.
As a last resort, you can also contact HMRC directly to request a record of your income and tax for the relevant year. However, this process may take more time than accessing the information through your employer or online account.
What If Your P60 Contains Incorrect Information?
Mistakes on a P60 can happen, especially if there have been payroll issues, incorrect tax codes, or errors in statutory deductions. If you suspect that the information on your P60 is inaccurate, you should raise the issue with your employer as soon as possible.
They are typically responsible for correcting any errors and issuing an updated version. In cases where the issue stems from HMRC’s records — such as an incorrect tax code — you may need to contact HMRC directly to resolve the matter.
It is your responsibility to ensure that the figures on your P60 are accurate, especially if you intend to use it for tax refunds, loan applications, or other formal purposes. Always double-check your pay and tax summaries before relying on them.
How to Use Your P60 for Claims, Financial Applications, and Self Assessment
Your P60 is more than just a summary of your annual income and deductions—it is a vital document that plays multiple roles in your financial life. From verifying tax payments to supporting applications and filing returns, this document serves as a key point of reference in both personal and professional contexts.
We explore the practical uses of your P60, including claiming tax refunds, applying for financial products, managing income across multiple jobs, preparing Self Assessment returns, and ensuring your financial records remain complete and compliant with HMRC expectations.
Claiming a Tax Refund Using Your P60
If you’ve overpaid Income Tax, your P60 is the essential document you’ll need to start the process of claiming a refund. Overpayments can occur for several reasons:
- You started or left a job mid-year
- You were on the wrong tax code for part of the year
- You had multiple jobs but didn’t earn enough in each to trigger tax correctly
- You received taxable benefits but didn’t use them the entire year
- You received emergency tax treatment
Your P60 clearly outlines the total amount of Income Tax deducted under the PAYE system for the full tax year. By comparing this figure with your actual earnings and tax obligations, HMRC can calculate whether you are due a refund.
To start the refund process, you can complete a claim online using your personal tax account or by submitting a paper form. You’ll be asked to provide specific details from your P60, such as your total gross pay and tax paid. HMRC may also require supporting information, especially if the overpayment is related to multiple jobs or incorrect codes. Having your P60 available during this process makes it much easier to ensure all your figures are accurate. A mismatch in reported income can delay the claim or lead to rejection.
Supporting Loan and Mortgage Applications
Lenders need reliable evidence of your income when you apply for financial products such as personal loans, credit cards, or mortgages. Your P60 provides an official, employer-issued summary of your annual income and tax status, which makes it a highly trusted document for income verification.
When applying for a mortgage, for example, most providers request the latest P60 alongside recent payslips and bank statements. This gives them a year-long view of your financial position, not just a monthly snapshot. The P60 helps confirm that you have a stable source of income and are paying tax properly, which indicates financial responsibility.
If you have multiple employers, it is advisable to present the P60s from each job so lenders can assess your full income. For people who switch jobs frequently or who have recently started new roles, a P60 from the previous employer may still be requested to establish income continuity. Keeping your P60s for the last several years can be beneficial, especially if you’re applying for a mortgage or refinancing, where historical income trends are reviewed.
Applying for Tax Credits or Other Benefits
Tax credits and certain benefits such as Universal Credit or child benefit top-ups may be calculated based on your annual income. Your P60 can help confirm that the income figures you report are correct.
When applying or renewing claims for tax credits, HMRC will ask for information about your total earnings and tax deductions from the most recent tax year. The figures on your P60 should be copied exactly to avoid triggering overpayments or underpayments. If your actual income differs from what HMRC believes it is, it could affect the amount of benefit you receive or lead to compliance checks.
Using your P60 for benefit applications also reduces the risk of manual entry errors. It provides an exact number that reflects what your employer has already submitted to HMRC. This alignment increases the accuracy and speed of your claim.
If you’re employed and also receive other forms of income, such as a pension or benefits in kind, it’s important to combine your P60 figures with other supporting documents when calculating your total income for means-tested claims.
Keeping Track of Tax on Multiple Jobs
Managing multiple jobs is increasingly common, particularly for individuals in hospitality, education, or freelance roles. Each job may be taxed separately, especially if income from one or more roles falls below the personal allowance threshold.
If you have more than one employer during the tax year, each one should provide you with a separate P60 after 5 April. These forms will reflect only the income and deductions made by that particular employer.
When reviewing your annual tax position, you should aggregate the totals from all P60s to see your complete income and tax payments. If the cumulative tax paid seems higher than expected, it may be worth investigating whether tax was deducted under the correct code or whether you can claim a refund.
It’s also important to review whether any of your roles were taxed using an emergency tax code. Emergency codes are usually temporary and can lead to overpayments. Your P60 will show which code was used, allowing you to identify such issues quickly.
If you moved jobs during the year and received a P45, your new employer should have used the information on that P45 to calculate the correct deductions moving forward. However, if there were delays or errors, these can show up as discrepancies on your P60.
Preparing for Self Assessment
Not everyone in the UK needs to file a Self Assessment tax return, but if you have untaxed income—such as from freelancing, property rentals, or investments—you may be required to do so. Your P60 becomes an important part of that process.
Even though the return focuses on income not taxed at source, your P60 provides clarity on how much you’ve already earned and what taxes have already been paid. You’ll need to include this information in the relevant section of your Self Assessment form to ensure your total income is recorded correctly.
Including PAYE income from your P60 ensures that you’re not overpaying or underpaying tax on your other sources of income. For example, someone with a part-time job and a freelance side business will use their P60 to report salaried income and then add the self-employed income separately.
Using the figures from your P60 also helps when calculating whether you owe any additional Income Tax or National Insurance Contributions. For higher earners, it can assist in determining whether additional tax bands or thresholds apply.
Monitoring Student Loan Repayments
If you have a student loan and your repayments are deducted via payroll, your P60 will display how much was paid over the tax year. This is useful for tracking your total contributions and ensuring your employer is deducting the correct amount.
There are different types of repayment plans for student loans in the UK, and the threshold and percentage deducted vary depending on your plan type. By comparing your gross pay with the repayment totals on your P60, you can verify whether deductions were accurate.
If you notice that repayments are missing or appear too high, it may indicate that your employer used the wrong plan type or failed to act on instructions from the Student Loans Company. In such cases, it’s best to speak with your employer and, if needed, contact the loan servicer to correct the issue.
Keeping track of your student loan payments using your P60 is also helpful for those who are close to completing their repayment. Since HMRC and the Student Loans Company don’t always have real-time syncing, you might continue paying for longer than necessary if you’re not careful.
Using Your P60 for Pension Monitoring
After retirement, your pension provider will issue a P60 to summarise the income paid to you and any tax deducted during the tax year. This works in the same way as it does for employment income.
If you receive more than one pension, you may get multiple P60s. HMRC will typically ask one provider to manage tax deductions for your State Pension, while the rest will report income and taxes independently.
Keeping track of these forms is crucial for pensioners, especially when claiming age-related benefits, completing tax returns, or checking whether the correct tax band has been applied. Some pensioners may also be eligible for tax relief or rebates based on their total income, and the P60 provides the foundational data needed to calculate eligibility.
If your pension income fluctuates or includes lump-sum payments, your P60 becomes even more essential for maintaining accurate financial records and ensuring compliance with HMRC guidelines.
Verifying Statutory Payments and Benefits
In addition to salary and tax, the P60 may also show statutory payments such as:
- Statutory Sick Pay
- Statutory Maternity Pay
- Statutory Paternity or Adoption Pay
These payments may affect your total taxable income and influence your eligibility for other benefits. Verifying these figures on your P60 can be important if you need to confirm your benefit history, especially in disputes with government departments or for future claims.
For instance, maternity pay may reduce the total taxable pay for a given period, which in turn may influence how much tax was deducted. If you believe an error has occurred, the P60 helps establish the facts when dealing with HMRC or your employer.
Organising Financial Records for Compliance
Keeping a well-organised record of your P60s is a key aspect of personal financial management. While HMRC recommends keeping records for at least 22 months after the end of the tax year, many financial advisors suggest keeping your P60s for up to six years, especially if you are self-employed, have investments, or own property.
A secure folder—either physical or digital—should contain your P60s, along with other key documents like P45s, payslips, tax credit statements, pension summaries, and bank statements. These records not only help with tax compliance but also provide a useful history for future planning or resolving disputes.
The P60 form plays a central role in the UK tax system, providing a concise summary of an individual’s income and tax deductions over the course of a tax year. Whether you are employed, retired, or dealing with multiple jobs or pensions, understanding how to manage your P60 correctly can help you stay financially organised and compliant with HMRC requirements.
Common Errors on the P60 and How to Correct Them
Mistakes on a P60 can happen for various reasons. It might be a result of payroll software glitches, inaccurate tax codes, miscalculated statutory payments, or incorrect employee information. Errors can lead to underpayment or overpayment of tax and may affect applications that rely on income verification.
Some of the most common errors include:
- Incorrect tax code
- Wrong National Insurance number
- Inaccurate gross pay or deductions
- Missing statutory payments
- Student loan repayment figures that do not match payslips
If you notice any of these or other discrepancies on your P60, it’s important to act promptly. Your first step should always be to contact your employer or pension provider. As the issuer of the document, they are in the best position to identify the problem and, if necessary, reissue a corrected version.
In cases where the error is related to your tax code, the employer might have used the wrong one due to outdated information from HMRC. In such cases, HMRC should be notified directly so they can send the correct code to your employer. This can prevent future problems and ensure your payroll calculations are correct going forward.
If your employer is unable or unwilling to resolve the issue, you should contact HMRC directly. You will need to provide details from your P60, your payslips, and any supporting documents to clarify the error. HMRC may initiate an investigation and liaise with your employer to have the information corrected.
Inaccuracies on your P60 should never be ignored, especially if you plan to use the form for Self Assessment, tax refund claims, or financial applications. An unresolved error can carry over into other areas and may take longer to fix later.
What to Do If You Lose Your P60
Losing your P60 can be inconvenient, especially if you need it for a loan or tax claim. Fortunately, there are several ways to retrieve the information without too much trouble.
Your first course of action should be to ask your employer or pension provider for a duplicate. Most payroll departments keep electronic records that allow them to reissue P60s even after the end of the tax year. You may be asked to verify your identity and employment details before a replacement is provided.
If your employer is unable to provide a copy or if you are no longer employed by them, you can log into your personal tax account online. This secure portal gives access to your PAYE information, including tax paid, gross income, and National Insurance contributions. While the layout may differ slightly from an official P60, the figures can be used in the same way for tax returns, applications, and verification purposes.
Another option is to contact HMRC directly and request a statement of earnings for the relevant tax year. This document contains the same financial information as a P60, although it may take longer to receive by post. It can be used in any scenario where a P60 is required. Keeping digital or paper copies of your P60 each year is highly recommended to avoid such situations. If you use a digital storage system, ensure that your files are backed up securely. If you prefer paper copies, consider using a dedicated file or document wallet labelled by year.
P60s and Retirement Income
The P60 remains relevant even after you leave the workforce. If you receive income from a private or workplace pension, your pension provider is responsible for issuing a P60 at the end of each tax year. This document will detail the total pension payments made to you and any Income Tax deducted before payment.
Just like a P60 from an employer, this pension P60 shows your name, National Insurance number, tax code, and total taxable income for the year. It acts as proof of income and is essential for pensioners who need to:
- Report total income to HMRC
- Claim tax refunds or allowances
- Apply for benefits or financial support
- Verify their income for housing, care, or credit applications
Many pensioners receive income from more than one provider. For example, someone might have a private pension and a former employer’s pension scheme. Each provider is responsible for issuing a separate P60, and you should keep all of them together for accurate reporting.
HMRC will typically assign one provider to handle the tax deductions for your State Pension. This means one of your pension P60s may show a higher level of tax than the others. It’s crucial to understand this system and verify that the total tax deducted aligns with your overall income.
Pensioners should also be aware that tax codes can change year to year based on total income, benefits received, and entitlements. Reviewing the tax code on your P60 can help identify whether you are on the correct one, particularly if you’ve recently started or changed pensions.
What If You Receive More Than One P60?
Receiving multiple P60s is common in certain situations and nothing to be concerned about. If you had more than one job during the tax year or are receiving income from several pension schemes, each employer or provider will issue a separate P60.
Each P60 will reflect the income and tax associated with that specific source, not your total income across all sources. It’s up to you to consolidate this information when filing a Self Assessment return or reviewing your tax status.
For example, if you worked part-time for two different companies and earned £18,000 from one and £8,000 from another, you would receive a P60 from each employer. The first might show tax deducted while the second may show no tax if the earnings fell below the personal allowance.
Adding the figures together helps you determine your total annual income and total tax paid. If the cumulative tax seems incorrect, you may need to check whether each job used the correct tax code or whether your allowance was allocated properly.
Keeping track of multiple P60s is especially important for:
- Freelancers with part-time employment
- Individuals who changed jobs during the tax year
- Workers with seasonal or casual contracts
- Pensioners with multiple income streams
In these cases, good recordkeeping becomes essential for accurate reporting and compliance.
Record-Keeping Best Practices for P60s
Maintaining your P60s year after year can help you manage your personal finances, track income trends, and ensure compliance with tax requirements. While HMRC recommends keeping employment records for at least 22 months after the end of the tax year, many advisors suggest keeping your P60s for six years or more.
This recommendation aligns with the general time limit HMRC can go back to investigate tax underpayments. In some cases, they can go back up to 20 years if they suspect fraud or negligence, although this is rare for salaried workers.
A good system for storing P60s should include:
- Clearly labelled folders by tax year
- Both physical and digital copies where possible
- Scanned versions of paper documents stored securely
- Password protection for digital files stored on your computer or cloud drive
If you’re self-employed or managing complex income from multiple sources, consider storing your P60s alongside your Self Assessment records, bank statements, expense logs, and receipts. This creates a central archive that makes it easier to respond to HMRC queries, apply for financial products, or prepare for retirement planning.
Checking Your Tax Code and Allowances
Each P60 includes your tax code, which determines how much tax is deducted from your income. It’s important to review your code regularly and compare it to the one listed on your payslips and tax notices.
If your code appears incorrect or unfamiliar, it may result in you paying too much or too little tax. Common reasons for code changes include:
- Receiving benefits in kind from an employer
- Having more than one job or pension
- Claiming tax reliefs such as marriage allowance
- Having underpaid tax from previous years
Your P60 can serve as the starting point for investigating tax code issues. If the amount of tax paid seems unusually high or low compared to your earnings, it could be due to an inaccurate tax code.
To resolve issues, contact HMRC with your P60 and recent payslips. They can review your tax status and make adjustments where necessary. In some cases, they may issue a refund or ask you to make additional payments.
Using Your P60 for Future Planning
Beyond taxes and applications, your P60 can help you plan ahead. Reviewing multiple years of P60s can show changes in income, tax rates, and deductions. This can be especially useful for:
- Budgeting and savings goals
- Retirement planning
- Comparing job offers or contract terms
- Tracking progress toward debt repayment or mortgage eligibility
When combined with other financial records like P45s, payslips, and pension statements, your P60 gives a reliable year-by-year picture of your earnings. This long-term view is valuable for personal financial planning, especially as you move through different life stages.
It also helps you detect any long-term errors, such as repeated use of the wrong tax code or deductions that were never applied correctly.
Conclusion
The P60 is far more than just an annual summary of tax and income—it’s a powerful financial document that supports accurate tax reporting, helps you stay compliant with HMRC, and plays a vital role in everyday financial activities like applying for loans, benefits, and mortgages. Whether you’re an employee, a pensioner, or someone with multiple income streams, your P60 ensures transparency between you, your employer or pension provider, and the tax authorities.
Understanding how your P60 works, when and why you receive it, and how to use it effectively allows you to take greater control over your personal finances. It can help identify overpaid taxes, support financial applications, confirm student loan repayments, and act as a reliable income verification tool.
Equally important is knowing what to do if your P60 is lost or contains errors. Promptly checking your document for accuracy each year—and keeping it in a secure, organised location—can save time and prevent complications later. For retirees, receiving a P60 from your pension provider is essential for managing pension income and tax obligations.
By incorporating your P60 into your annual financial checkup, you can stay informed, avoid costly tax mistakes, and plan more effectively for the future. With the right knowledge and recordkeeping habits, this single form can become one of your most valuable financial assets year after year.