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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’ll 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. If you’re a Crunch client, then you can access your P60 within the Crunch system.
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 a UK umbrella company will receive a P60. Your umbrella company should provide it to you – check out our Crunch Umbrella service for information on how we support our Umbrella contractors.
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. If you receive a salary from other sources, you should get a P60 from your employer(s).
Check out our limited company online accountancy support for more details on how Crunch can support you and your business, helping you file your Self Assessment, manage your accounts, and claim your expenses.