What Are the Difference Between P45 and P60? 12 Apr 2023

The main difference between a P45 and a P60 in the UK is the information they contain and when they are issued to employees.

A P45 is issued to an employee when they leave a job and it shows their income and tax deductions up to the date of leaving. It consists of four parts, which are sent to HM Revenue and Customs (HMRC), the employee and the new employer (if applicable). The P45 provides information about the employee's tax code, total pay and deductions for the current tax year up to the date they left their job, and it is used by HMRC to calculate the employee's tax liability for the current tax year. Order P60 Online UK

On the other hand, a P60 is issued to employees at the end of the tax year (5 April) and it shows their total pay and tax deductions for the entire tax year. It is issued by the employer and contains information about the employee's total pay and deductions for the tax year, including income tax and National Insurance contributions. The P60 also includes the employee's tax code and the amount of tax they have paid for the year.

In summary, the key differences between a P45 and a P60 are:

A P45 is issued when an employee leaves a job, while a P60 is issued at the end of the tax year.
A P45 shows income and tax deductions up to the date of leaving, while a P60 shows total pay and tax deductions for the entire tax year.
A P45 is divided into four parts, while a P60 is a single document issued by the employer.