A P60 is a form UK employers must issue to their employees at the end of every tax year. The form includes information about the employee’s gross income, tax payments, and other deductions. It offers employees a way to show proof of earnings in different situations like tax refund requests, loans, and mortgages.
What’s in a P60?
A P60 form includes the following information:
- Employee information
- Employer information
- Tax code
- Tax payments and other deductions
- Tax income, including salary, bonuses, and taxable benefits
Who has to issue a P60?
Employers are legally required to issue P60 forms to any UK employees paid through PAYE (Pay As You Earn).
Difference between P60, P45, and P11D
P60, P45, and P11D can sometimes get confused with one another. We go over the differences below:
P60 includes an overall view of an employee’s earnings, tax paid, and deductions for the previous tax year. It’s used by employees to apply for loans or mortgages, or request tax refunds.
P45 is essentially an exit form and is given to employees by their employers when they officially resign. It includes information about the employee’s earnings and tax payments through their last day at the company.
P11D reports any benefits and expenses that an employer has provided to employees that haven’t been taxed through the payroll system.
Managing tax forms for a global workforce
Because tax forms differ across different countries, managing them in the context of a global workforce can get tricky. Companies often find themselves juggling different deadlines and tax form requirements while figuring out how to keep track of all these documents in a secure and organized manner.
Companies can solve these problems by ensuring they have the right resources and expertise to navigate local regulatory ecosystems through a payments execution solution. Additionally, they can rely on technology to streamline the process of submitting these forms.