What is a P60?

A P60 explains how much income you earned from an employer in a tax year. It also details the tax you paid, National Insurance contributions and student loan deductions. Don't confuse it with a P45 which you get when you leave a job.

Why is it important?

When completing a tax return, you need to report any income from employment, as well as the tax that you already paid on that income. These figures form part of the calculation of the tax you owe on any non-employment income.

The key pieces of information on your P60 that you should include under Employment income on the Tax tab of Earnr:

• Employer Name
• Employer Paye Reference
• Total Pay in this employment
• Total Tax in this employment

You should receive your P60 by the end of May each year, either physically or digitally

If you have many employers at the end of the tax year, each of them should issue you a P60. Make sure you keep hold of them all and include each employer when completing your tax return with Earnr.

Whilst there are lots of different P60 formats out there, lots of them look like this:

Don't confuse it with your P45

If you change jobs you will get a P45. You will also need the information on this to include for that employment in your tax return.