What are the features of P60 in UK? 26 May 2023

The P60 is an important document in the UK that employers provide to their employees at the end of each tax year (April 6th to April 5th). It summarizes the employee's total earnings and the tax that has been deducted during the tax year. Here are the key features of a P60: Order P60 & Replacement P60

Personal Information: The P60 includes the employee's personal information, such as their full name, National Insurance number, and the tax year to which the document relates.

Earnings and Deductions: The P60 displays the total earnings the employee received during the tax year, including wages, salary, bonuses, and other benefits. It also shows the total tax deductions made from their earnings, including income tax and National Insurance contributions. 

Tax Codes: The P60 states the tax code that was used to calculate the employee's tax deductions during the tax year. The tax code determines the amount of tax-free allowance an employee is entitled to before income tax is deducted.

Employer Information: The P60 includes details about the employer, such as the company name, address, and employer reference number.

Total Tax Paid: The P60 provides a summary of the total tax that has been deducted from the employee's earnings throughout the tax year.

End of Employment: If the employee left the job during the tax year, the P60 may indicate the date of leaving and the employment status (e.g., whether it was a full year's employment or part-year).

The P60 is an important document for employees as it serves as proof of income and tax paid during the tax year. It is often required for various purposes, including tax returns, applying for financial services, and verifying income for loan applications or mortgage approvals.