Everything you need to know about P60s

A P60 is an important document which summarises an employee’s tax information in a given year. By exploring the P60 in more detail, we’ll explain all you need to know from required information to deadlines.

What is a P60?

A P60 is a detailed statement of income earned, Tax Deducted at Source (TDS) and National Insurance contributions an employee has received from their employer in a given tax year. 

In simple terms, a P60 is a year-end statement providing proof of employment and yearly tax payments.  

If staff ever need to claim back overpaid taxes or prove their income to secure a loan or mortgage, they will need to submit their P60.

What information must be included on a P60?

A P60 must include:

  • Employee details (name, address and PAYE reference number)
  • Tax code for the corresponding year (e.g. 2023/24)
  • All taxable earnings earned in the current tax year along with taxes paid to the current and previous employers in that year
  • National Insurance contributions made between April 6 – April 5
  • Any statutory payments received such as maternity, paternity or shared parental pay
  • Deductions from student loan or postgraduate loan repayments.

Any incorrect information included on a P60 must be reported to HMRC using the P35 form. The amended P60 must then be returned to the employee within 30 days.

When is the P60 deadline?

Employers must provide all employees with a P60 by 31 May if they were employed at the end of the financial year (5 April). 

It is the employer’s responsibility to ensure a P60 is provided to any employee who left the organisation during the tax year. Employers must also keep a record of all P60 documents for at least three years after issue.

What happens if the P60 deadline is missed?

HMRC issues penalties for late submissions. This can vary from a warning letter to expensive fines, starting at £300 for a late release with subsequent £60 per day fees until the P60 is issued. 

It’s best to prepare P60s weeks before the deadline to avoid any late penalties and fees. For support and assistance with P60s and other payroll queries, contact our team.