P60 and P45 explained — what they're for and how to get them

What is a P60 and what is it for?

Your P60, also known as an 'End of Year Certificate', is a crucial document that summarises your total pay and the tax deducted from it in a specific tax year. You receive one from your employer each year you are employed, provided you are still working for them on 5 April.

The tax year runs from 6 April to 5 April the following year. Your employer must provide your P60 by 31 May following the end of the tax year.

Why you need your P60

You'll need your P60 for several important reasons:

• Proof of earnings and tax paid: It serves as official evidence of your income and the tax you've already paid.
• Completing a Self Assessment tax return: If you need to complete a Self Assessment, your P60 figures are essential for declaring your employment income and tax.
• Claiming tax refunds: If you believe you've overpaid tax, your P60 will be needed to support your claim.
• Applying for loans or mortgages: Lenders often ask for P60s as proof of income.
• Applying for tax credits or Universal Credit: These benefits require details of your earnings and tax.

What is a P45 and what is it for?

A P45 is a document you receive from your employer when you stop working for them. It details your pay and the tax you've paid during the current tax year, right up to your leaving date.

Your employer should give you your P45 as soon as you stop working for them. They cannot refuse to give you one, even if you leave without notice.

Why you need your P45

Your P45 is vital for your next steps after leaving a job:

• Starting a new job: You give 'Part 2' and 'Part 3' of your P45 to your new employer. This ensures you are taxed correctly from the start of your new employment.
• Claiming Jobseeker's Allowance: If you are not starting a new job immediately, you will need your P45 to claim benefits.
• Completing a Self Assessment tax return: Like the P60, it provides essential figures for your tax return if you have other income or need to declare your employment.
• Claiming a tax refund: If you've overpaid tax during the period covered by the P45, you might be able to claim a refund.

How to get your P60 or P45

Both P60s and P45s are issued by your employer.

• P60: Your employer must provide this to you by 31 May after the end of the tax year (5 April). It can be a paper copy or an electronic version, depending on how your employer usually provides payslips and other documents.
• P45: Your employer must give you this when you leave your job.

If you haven't received these documents, or if you've lost them, here's what to do:

1. Contact your former employer: This is always the first step. They are the only ones who can issue a P45. For a P60, they can usually provide a duplicate or a statement of earnings.
2. HMRC cannot issue P60s or P45s: HMRC does not issue these documents directly. They can, however, provide a statement of your employment history and tax paid, which may be acceptable in some situations.
3. For lost P60s: If your employer cannot provide a duplicate P60, they might be able to give you a 'statement of earnings' for the relevant tax year. This document should contain the same information as a P60 and can often be used in its place.
4. For lost P45s: Your employer cannot issue a duplicate P45. If you start a new job without one, your new employer will ask you to complete a 'Starter Checklist'. This helps them determine your correct tax code.

Common mistakes

• Not keeping copies: Always keep your P60s and P45s in a safe place. Digital copies are also a good idea.
• Assuming HMRC can provide them: HMRC does not issue these documents; they come directly from your employer.
• Delaying action for lost documents: If you need a P60 or P45 and can't find it, contact your employer as soon as possible.
• Not providing a P45 to a new employer: This can lead to being put on an emergency tax code, meaning you might pay too much tax initially.