The P60 form is a vital tax document that is given to each employee at the end of the tax year (which runs each year from 6th April to 5th April). They essentially provide an annual summary of how much tax has been paid and the total employment income for that tax year.
This official record is useful for individuals who may need to claim tax relief or a tax return when they have overpaid tax due to business expenses not yet being submitted to HMRC. By seeing the total tax paid, employees can work out if they’ve paid too much tax.
From a business owner’s perspective, it’s vital that you provide a P60 form to every employee, as this is an important document and record that many employees will keep each year to compare tax paid and to bring up any discrepancies with HMRC. A P60 should be given to ALL employees – past and present. If an ex-employee completed work for you in the tax year that the P60 relates to, then they must receive one.
Below we’ll cover everything you need to know about P60s – what they’re for, who gets them, key details included, when employees should receive it, and what to do if they don’t get one for some reason.
We’ll also outline what a P60 tax refund is, give some examples, and walk through the process of claiming money back.
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What Is The P60 Tax Form?
Employers have to provide a P60 to each employee every year. It is an annual payroll statement summarising total employment income and tax situation for the year – all the tax paid over the previous tax year.
This document is useful for comparing to previous years and is usually the main way employees notice tax discrepancies. It’s an official record of the employee’s income tax position.
P60 Quick Overview:
| Purpose: | The P60 documents pay and tax details through PAYE. |
| What’s on it: | Total pay before tax, total income tax and National Insurance paid, employer details like PAYE reference, student loan deductions, statutory payments, etc. |
| When employees receive it: | By 31st May after the end of the tax year it covers. |
The key specifics shown on a P60 are:
- Employer name and PAYE reference
- National Insurance number
- Taxable pay and total tax paid
- The tax code the employee was on
Most employers send out P60s via post or email by the 31st May deadline after the end of the tax year.
Do You Get A P60 When Self Employed?
If you’re self-employed then you won’t receive a P60 each year, as you’ll need to file a self assessment tax return which will help you to work out exactly how much tax you owe for the previous tax year.
So long as the information you include in your self assessment tax return is correct, then you won’t over or underpay tax.
A P60 is a document issued by an employer to all their employees – as you aren’t employed by anybody, you won’t receive a P60.
What Is A P60 Tax Refund?
A P60 tax refund refers to money owed back to the employee based on the tax and income information shown on the P60 form.
There are two common reasons a person might be due a refund:
- They overpaid tax, e.g. due to the wrong tax code
- They qualify for tax reliefs or allowances and didn’t claim such as tax credits throughout previous tax years
P60 Tax refund examples
| Incorrect Tax Code | An employee was put on an emergency tax code that took too much tax from their wages. The P60 will show excess tax paid that can be reclaimed. |
| Job Change | If the employee switched employers mid-year, they might have overpaid one employer before leaving. The P60 helps work out any refund due by calculating the total tax deducted from pay across all the employments during the year. |
| Unclaimed Reliefs | A P60 helps identify tax reliefs the employee forgot to claim during the year, which can then be claimed back. |
So in different situations, the P60 helps determine if a tax refund is owed and how much needs to be repaid.
Claiming A P60 Tax Refund
In order to claim a tax refund, employees can do so as either a flat rate deduction or based on the expenses they have incurred as a result of their employment. If a claim for a tax refund is based on the expenses they had to pay out of their personal pocket for work, then they should ensure they have receipts for all of the expenses so that proof can be provided to HMRC.
Let’s explore the different ways an employee can claim below:
Flat Rate Deductions
Flat rate deductions are actually government standardised tax relief payments offered to certain industries and professions. Some examples of these professions entitled to flat rate tax deductions include:
- police
- armed forces
- agricultural workers
- pilots
- construction workers
- fire service workers
- health workers
- prison staff
And far more besides. Employees can check out the full list and the amount of relief they’re entitled to on the UK Government’s guide to flat rate tax relief for different professions.
The reason certain professions receive these flat rate deductions is that the UK government knows that there are certain work related expenses involved in these industries each year, and so rather than having millions of claims sent in each year, the government simply offers a flat rate deduction to each worker in these fields.
For those who qualify, they simply apply on the HMRC website for the flat rate deduction they’re entitled to, and will receive a tax refund based on that amount.
Business Related Expenses
If an employee incurs expenses as a direct result of performing their duties as part of their employment, then they’re entitled to claim back those expenses within 4 years of incurring the expense, which will, in turn, reduce the amount of tax they ought to have paid in the tax year, meaning they can claim a tax refund.
In order to claim an employee will need receipts for all work related expenses.
It’s also important to note that if anyone tries to claim expenses that aren’t work related they may be caught out and potentially receive a hefty fine for misleading HMRC and evading their tax responsibilities.
Who Gets A P60 Tax Statement?
As an employer, you should send a P60 to each of your employees every year so long as the following criteria applies to them for the tax year the P60 relates to:
- Worked in the UK over the last tax year
- Paid income tax and National Insurance (usually through PAYE)
- Are registered with HMRC
Basically, if tax was deducted from a job, you’re entitled to a P60 statement.
What Information Appears On A P60?
The P60 tax form summarises employment and tax details, such as:
- Total taxable pay
- Total UK income tax paid
- Tax code
- National Insurance contributions
- Other deductions like student loan repayment
- Employer address and PAYE reference
It’s important for employees to check these details against their own records to ensure accurate tax payment.
How Do Employees Claim A Refund With P60 Details?
If an employee thinks they’re owed a tax rebate, they should follow these steps:
- Review the P60 – Identify any tax overpayments or unclaimed amounts
- Contact HMRC – Notify HMRC about the potential refund, quoting P60 info
- Submit Tax Return (If Needed) – More complex cases might require a Self Assessment tax return
- Await Response – HMRC will verify and process eligible refunds
Employees can also track refund progress online using HMRC’s services.
And it’s always wise for employees to keep P60 forms safe for at least 22 months in case there are any mistakes or changes that need to be made.
If the employee doesn’t at first actively pursue a tax refund, the HMRC’s automatic reconciliation system will aggregate pay and tax details after the end of the tax year to determine if people are due a tax repayment, typically issuing a P800 tax calculation in the summer months following the tax year. If a P800 calculation indicates a refund is due, the employee may need to actively claim it, as HMRC does not issue all repayments automatically anymore.
When Should Employees Get Their P60 Tax Document?
By law, employers must issue P60 statements to employees by the 31st May following the end of the tax year, which runs from 6th April to 5th April. So employees should receive their P60 covering the previous tax year by the end of May.
If it hasn’t arrived by early June, they should get in touch with their employer.
If you are an employer, it’s important to keep the 31st May deadline in mind, so that your employees know what to expect and can find any tax discrepancies for the financial year early.
How To Get A Replacement P60
For those who need another copy of their P60 tax statement, they should contact their employer’s payroll or HR department – they can email or print it out.
Employees can also request past P60 details directly from HMRC by phone or post. They just need to provide their employer name, tax year, and National Insurance number.
First, they should speak to their employer and ask them to provide their missing P60 statement.
If that’s not possible for whatever reason, the final payslip for the year will have the same income and tax information needed to complete tax returns or manage the tax position.
In Summary
As an important document for tax, employees should understand what P60s contain and their importance. Employers should also be aware of what’s required and when it is expected to ensure employees get all the information they need each year. Employees should check their statement for accuracy and seek assistance if they believe they are owed a refund or have any other tax-related questions.
For a more in depth guide on the P60, please see our article “P60 meaning” by clicking here.
