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HMRC delights in giving its never-ending collection of forms cryptic names. The P60 is just one of them, and you’re about to learn everything you need to know about it.
A P60 is a summary of your pay and all deductions in a specific tax year (that’s 6th April right through to 5th April the following year).
It will detail a variety of information, including:
If you’re receiving a salary on 5th April, you should receive one by the 31st May that year. If you run a limited company and draw a salary, you’ll need to issue yourself with a P60. In most cases, your accountant will do this for you.
Aside from being a handy record of the amount of tax you’ve paid, the form may be required for a number of other reasons, including:
If you’re employed by more than one company on 5th April in a given year, you’ll receive separate forms from each.
Whether you’re a sole trader or run a limited company, you need to file P60 forms for all employees who are on your books on 5th April each year. The forms must then be provided to your employees by 31st May the same year. The forms can be printed or digital – the choice is yours.
Contractors operating through an umbrella company will receive a P60. Your umbrella company should provide it to you.
Since you don’t draw a salary as a sole trader, you won’t need to issue yourself with a P60. However, if you have any employees you’ll need to issue these forms to them. And if you receive a salary from other sources, you should get a P60 from your employer(s).
Over the last few months of 2017 and the whole of January, client managers are busy reminding people of upcoming deadlines and things they’ll need to do to make it easy for them to keep on top of their Self Assessments.