What is a P60 Form? Should You Get One? Do You Need One?
It seems that HMRC enjoyed giving obscure names to their collection of forms. One of such forms is the P60 and we are about to tell you everything you need to know about this form.
What is a P60 Form?
A P60 form is where you will put the summary of all your earnings as well as your deductions in a particular year. The starting date will the April 6th of the current year and it will end on April 5th of the succeeding year. It includes all the details of the necessary information such as the total earnings from all your present and previous employers during the prior tax year, your total tax deductions through PAYE, National Insurance Contributions (NICs), statutory payments (Maternity or Paternity pay), as well as student loans (if there is any).
Who Will Get a P60 Form?
Anyone who receives their salary on April 5th will receive a P60 form on May 31st of the same year. If you obtain a salary from your limited company, then you must get yourself a P60 form. But most often, this will be done by your accountant.
Why Do You Need a P60 Form?
With a P60 form, you will have a record of all the taxes that you have paid. Aside from this, a P60 form can be used for different purposes. For instance, if you want to reclaim your overpaid Income Tax or National Insurance or if you want to apply for loans or mortgages. They are also very handy when you are accomplishing a Self Assessment return or if you want to apply for anything that requires proof of your earnings, for instance, tax credits.
What If You Have Several Employers?
There are chances that you are employed by multiple companies on April 5th of a particular year. If this is the case, then you will be receiving separate P60 forms from each employer.
What Are The Responsibilities Of Employers?
Whether you are running your own limited company or you are a sole trader, you are required to file P60 forms for all the employees who are working with your company on April 5th of each year. It is your responsibility to provide these forms to your employees on May 31st of the same year. You can either print the form or provide it to them digitally.
What If You Are Using An Umbrella Company?
If you are a contractor and you are operating under a UK umbrella company, you will still receive your P60 form. The form will be given to you by your umbrella company.
Does A Sole Trader Need A P60 Form?
Being a sole trader, you don’t have any salary, hence, there is no need for you to provide yourself with a P60 form. Nevertheless, if you have employees working on your company, then you need to provide them with P60 forms. On the other hand, if you are receiving a salary from different sources, then you should get a P60 form from each employer.