A P60 is an end-of-year certificate that UK employers must provide to every employee who is on the payroll on 5 April (the last day of the tax year). It shows the employee’s total pay, the income tax deducted and National Insurance contributions paid during the tax year.
What a P60 Contains
The P60 summarises the employee’s entire tax year earnings and deductions from that employer. It includes:
| Field | Description |
|---|---|
| Employer name and PAYE reference | Identifies the employer |
| Employee name and NI number | Identifies the employee |
| Tax year | The tax year the P60 covers, ending on 5 April |
| Total pay in the year | Total gross salary and taxable payments |
| Total tax deducted | Income tax withheld under PAYE |
| Tax code | The final tax code used in the year |
| Employee NIC | Total employee National Insurance contributions |
| NIC category letter | The NIC category (usually A for most employees) |
| Earnings at the Lower Earnings Limit | Earnings up to the LEL |
| Earnings above the LEL up to the Primary Threshold | Earnings between the LEL and the PT |
| Earnings above the PT up to the Upper Earnings Limit | Earnings between the PT and the UEL |
| Student loan deductions | Total deducted for Plan 1, Plan 2, Plan 4 or Postgraduate loans |
| Statutory payments | Total SSP, SMP or other statutory pay included |
When Must a P60 Be Issued
Employers must provide the P60 to each qualifying employee by 31 May following the end of the tax year.
Key Rules
- The P60 must be given to every employee on the payroll at 5 April
- Employees who left during the tax year receive a P45 instead, not a P60
- P60s can be issued electronically or on paper
- The employer must not charge the employee for the P60
- P60s are generated by the employer’s payroll software from RTI data
Who Gets a P60
| Situation | Document Received |
|---|---|
| Employee on payroll at 5 April | P60 |
| Employee left during the tax year | P45 (at leaving date) |
| Employee with multiple jobs | One P60 from each employer |
| Director on payroll at 5 April | P60 |
If an employee has multiple jobs, each employer issues a separate P60. The employee’s total income across all employments is reconciled by HMRC using data from RTI submissions.
Why the P60 Matters
For Employees
The P60 is an important document that employees may need for:
- Self Assessment tax returns — declaring employment income and tax paid
- Mortgage applications — lenders use P60s as proof of income
- Loan applications — as evidence of earnings
- Tax refund claims — if the employee believes too much tax was deducted
- Benefit claims — proving income for Universal Credit or Tax Credits
- Pension calculations — verifying pensionable earnings
- Student loan balance checks — confirming repayments made
For Employers
The P60 confirms that the employer has correctly reported and deducted tax and NICs throughout the year. It should reconcile with:
- The final RTI submission for the tax year
- The employer’s payroll records
- The employee’s payslips — the cumulative totals on the final payslip should match the P60
P60 and the Tax Code
The P60 shows the final tax code used for the employee in the tax year. This code determines the tax-free allowance and is important for:
- Checking that the correct code was applied
- Identifying if emergency tax was used (codes ending in W1, M1 or X)
- Confirming any Marriage Allowance transfer (M or N codes)
- Verifying any tax code adjustments made during the year for benefits in kind or underpayments
If the tax code on the P60 looks wrong, the employee should contact HMRC to request a review.
P60 and National Insurance
The P60 breaks down NIC earnings into the threshold bands used for National Insurance calculations:
| Earnings Band | Employee NIC |
|---|---|
| Up to LEL (Lower Earnings Limit) | None, and the earnings do not count for State Pension |
| LEL to PT (Primary Threshold) | None, but the earnings count towards State Pension |
| PT to UEL (Upper Earnings Limit) | Class 1 main rate |
| Above UEL | Class 1 lower rate |
The thresholds and rates are set for each tax year and published on GOV.UK. The NIC figures on the P60 are used to verify the employee’s National Insurance record with HMRC, which affects their State Pension entitlement.
P60 and Student Loans
If the employee has a student loan, the P60 shows the total amount deducted during the tax year. Each loan plan has its own annual repayment threshold, usually reviewed every April. Plans 1, 2, 4 and 5 are repaid at 9% of earnings above the threshold and Postgraduate Loans at 6%. See student loan deductions for how payroll applies them.
Electronic P60s
Most employers now issue P60s electronically, typically through:
- The employer’s HR or payroll portal
- Email with a PDF attachment
- The payroll software’s employee self-service feature
Electronic P60s are legally valid provided the employee can access and print them. The employer should ensure the system is secure and that employees are notified when their P60 is available.
Lost P60s
If an employee loses their P60:
- The employer can provide a replacement or a statement of earnings and deductions
- HMRC cannot issue a replacement P60 — only the employer can
- HMRC can provide information from their records about tax paid and earnings, but this is not a P60
- Employees can check their tax records through their Personal Tax Account on GOV.UK
Employers must generally keep PAYE records for at least 3 years from the end of the tax year they relate to.
P60 vs Other Payroll Documents
| Document | Purpose | Timing | Issued To |
|---|---|---|---|
| P60 | End-of-year summary | By 31 May after tax year end | Employees on payroll at 5 April |
| P45 | Leaving certificate | When employee leaves | Leavers during the year |
| P11D | Benefits in kind report | By 6 July after tax year end | Employees with BIKs |
| Payslip | Per-period pay details | Each pay period | All employees |
Checking a P60
Employees should verify their P60 figures against:
- Final payslip of the tax year — cumulative figures should match
- Previous payslips — the sum of all periods should equal the P60 totals
- Tax code — ensure it matches the code on the latest payslip
- Student loan deductions — total should match payslip cumulative totals
- Pension contributions — if shown, should match contributions through auto-enrolment
If there are discrepancies, the employee should raise them with the employer’s payroll department first. If the employer cannot resolve the issue, the employee can ask HMRC to investigate.
P60 and Accounting
From the employer’s perspective, the P60 data should reconcile with the accounting records:
- Total gross pay on all P60s should match the salary expense for the year
- Total tax deducted should match PAYE liability payments to HMRC
- Total NIC should match the employee NIC amounts reported through RTI
- Any statutory payments (SSP, SMP) should match the corresponding expense accounts
This reconciliation is an important year-end check for payroll accuracy and compliance.