What is a P60?

A P60 is a document that details how much taxable salary you’ve earned in a tax year, which will be given to you by your employer in some cases an umbrella company.

Read on to find out everything you need to know about your P60 – from why you need it to how you get one and what it means for you as an umbrella worker.

What is a P60?

A P60 shows both how much you were paid by your employer/umbrella company and the amount of tax and NI you’ve paid in a given tax year.

Sometimes called an ‘End of Year Certificate’ – because it’s issued at the end of the tax year – a P60 is effectively a statement of your earnings and taxable pay.

What information is on a P60?

As well as summarising your taxable earnings, a P60 will also detail:

  • The tax year that it refers to
  • Your total National Insurance Contributions (NICs)
  • Your tax code

If you’ve had more than one employer in the tax year – for example, if you’ve changed umbrella company – it will show your total taxable earnings for the year, from all employers.

Why do you need a P60?

As a definitive statement of your earnings and taxable income, a P60 can help you to demonstrate your income – when applying for a loan or mortgage, for example – or if you need to claim a tax rebate.

How to get a P60

You’ll be issued a P60 by your employer or umbrella company after the end of each tax year.

How long does it take to get a P60?

Employers, including umbrella companies, have a legal obligation to issue you with a P60 no later than 31st May, following the end of the tax year.

The tax year runs from 6th April to the following 5th April. So the longest you’ll wait for your P60 is eight weeks, but you’ll probably get it much quicker.

How long is a P60 valid for?

A P60 only refers to the tax year in which it was issued. But, as a tax document, it’s always worth keeping hold of it.

Should you keep hold of your P60?

In short, yes. Having a record of your tax payments will likely prove useful, particularly if HMRC contacts you about your tax payments or any outstanding tax liabilities.

Ultimately, a P60 shows how much you’ve earned and how much tax you’ve paid in a given tax year. You’ll get one from your employer by 31st May, following the end of the tax year to which it relates.

If you have any questions about the P60 or want to learn more about working via an umbrella company, please get in touch.

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