What Is a P60? The UK Guide to Pay, Tax & Refunds

According to Financial Times Over 5.6 million UK taxpayers overpaid tax in 2023/24 - totalling £3.5 billion. Many of them had a P60 sitting in a drawer and had no idea they could get that money back.

If you've ever wondered what a P60 is, why it lands on your desk every May, or whether it means you're owed a refund - this guide covers everything you need to know. Clearly. Accurately. No jargon.

Key Takeaways

• A P60 is an annual summary of your pay, tax, and National Insurance contributions for the tax year (6 April to 5 April)
• Your employer is legally required to issue your P60 by 31 May each year
• You only receive a P60 if you were employed on 5 April - the last day of the tax year
• It's one of the most important documents for claiming a tax refund, applying for a mortgage, or filing a Self Assessment
• Sole traders do not receive a P60 - but limited company directors who pay themselves a salary must issue one to themselves
• If you've lost your P60, your employer can provide a replacement - or you can access the same information via your HMRC Personal Tax Account. See how to access your personal tax account here.

What Is a P60? (P60 Meaning Explained)

According to HMRC, a P60 is a statement provided by your employer at the end of the tax year, summarising your total pay and the tax you've paid, which can be used to claim back any overpaid tax if eligible. See if HMRC automatically refund overpaid tax here.

Think of it as your annual tax receipt. It confirms:

• How much you were paid
• How much income tax was deducted
• How much National Insurance (NI) you contributed

If you have more than one job, you'll receive a separate P60 from each employer. Each one only covers the earnings from that specific employment.

Second job tax is often seen as a complicated maze to navigate; see how we unfolded second job tax here. If you are self-employed, owning multiple businesses constitutes an entirely different taxation; take a look.

It's not just a piece of paper to file away. This document is one of the most practical tools available to you as a UK taxpayer - and most people underestimate it.

What Information Is on a P60?

Here's exactly what you'll find on your P60 form:

If any of these figures look wrong, don't ignore it. Cross-reference your P60 against your payslips. Errors do happen - and they can mean you've overpaid (or underpaid) tax.

How to Read Your P60: Step-by-Step

Your P60 can look dense at first glance. Here's exactly what to check, in order, and what each figure actually means for you.

Step 1: Confirm Your Personal Details

Before you look at a single number, check the basics. Your full name, National Insurance number, and employer's PAYE reference should all be correct. If your NI number is wrong, any tax record attached to this P60 may not be properly linked to your HMRC account - contact your employer immediately to get a corrected copy.

Step 2: Check Your Tax Code

Your tax code determines how much of your income was treated as tax-free. The most common code for 2025/26 is 1257L, which reflects the standard Personal Allowance of £12,570. If your P60 shows a different code - especially an emergency code like BR, 0T, or W1/M1 - you may have been overtaxed for part or all of the year. This is one of the most common reasons people are owed a refund.

Step 3: Look at Your Total Pay for the Year

This is your gross earnings figure - everything you were paid before any deductions, including salary, bonuses, and commission. Cross- reference this against your final payslip of the tax year, which should show a running year-to-date total. If the two figures don't match, flag it with your payroll department. Do not assume the P60is correct by default.

Step 4: Check Total Tax Deductedf

This is the income tax taken from your pay across the full year via PAYE. To do a quick sense-check: subtract £12,570 (the Personal Allowance) from your total pay. The first £37,700 above that is taxed at 20%. If you earned within the basic rate band all year, your tax deducted should be roughly 20% of your taxable income. A figure significantly higher than that is a strong signal you've overpaid. A figure lower than expected could mean you have a tax bill incoming - particularly if you had multiple income sources.

Step 5: Review Your National Insurance Contributions

Your P60 shows the total National Insurance you paid as an employee for the year. For 2025/26, the standard employee NI rate is 8% on earnings between £12,570 and £50,270, dropping to 2% above that threshold. If your NI figure looks unusually high or low relative to your earnings, it's worth querying - though NI errors are less common than tax code errors.

Step 6: Check Student Loan Deductions (If Applicable)

If you're repaying a student loan through PAYE, your P60 will show the total amount deducted for the year. Check this against your Student Loans Company account to make sure your balance has been updated accordingly. Overpayments on student loans can be reclaimed, but only if you catch them.

Step 7: Compare the Total Against What You Should Have Paid

This is the most important step. Use HMRC`s income tax calculator at gov.uk to enter your total pay and check what your tax liability should have been for the year. If the tax deducted on your P60 is higher than the calculator's figure, you have likely overpaid and are owed a refund. If it is lower, HMRC may contact you with an underpayment notice - usually collected through an adjusted tax code the following year.

If you're unsure how to interpret the comparison, or if the numbers are complicated by multiple jobs, periods of unemployment, or irregular income, speaking to an accountant is the fastest way to get a definitive answer.

What Does It Mean When You Get a P60?

Getting a P60 means you were on your employer's payroll on 5 April - the last day of the tax year. For other important dates for the 2025/2026 tax year, read here. That's the trigger-no employment on that date, no P60 from that employer.

When your P60 arrives, it's essentially HMRC and your employer telling you: "Here's a complete record of what you earned and what you paid in tax this year." Bear in mind that the total salary is calculated from 6 April of the previous year to 5 April of the current year.

For example, if you have received your P60 in May 2026 and have had a pay rise in the meantime, you may not be able to see your annual salary in full on your P60 as it had been calculated from 5 April 2025 to 5 April 2026.

It's your opportunity to check whether those numbers are right. Were you on the correct tax code all year? Did any mid-year changes - a pay rise, a second job, a period of sick leave - affect your tax calculation? Your P60 is how you find out.

It's also the document you'll need if:

• You're applying for a mortgage or loan (lenders use it to verify income)
• You're filing a Self Assessment tax return
• You believe you've overpaid tax and want a refund
• You're applying for tax credits or benefits

When Is a P60 Issued? (P60 Deadline & Dates)

Your employer must provide your P60 by 31 May following the end of the tax year. So for the tax year ending 5 April 2025, your P60 deadline is 31 May 2025.

It can be issued as a paper copy or electronically - many employers now provide a digital P60 via a payroll or HR portal.

Haven't received yours by the deadline? Contact your employer or payroll department directly. If they fail to issue P60s on time, HMRC can fine them.

What's the Difference Between a P60 and a P45?

This is one of the most common questions — and the answer is straightforward.

The key distinction: a P60 is a full-year summary, while a P45 is a mid-year snapshot triggered by leaving a job.

You cannot use a P60 in place of a P45 when starting a new job. If you don't have a P45, your new employer will ask you to complete a Starter Checklist instead.

How Do You Obtain Your P60?

In most cases, you don't need to do anything - your employer issues it automatically.

Here's how to get yours in different situations:

If you're currently employed: Your employer will provide your P60 by 31 May - either as a printed document or through a digital employee portal (such as those generated via Sage payroll software, also referred to as a Sage P60).

If you've lost your P60: Ask your employer for a replacement copy. They're required to keep payroll records, so they can reissue one. According to gov.uk, Employers are legally required to keep P60 forms for 3 years, so you can ask them as far back as 3 years.

If your employer can't provide one: You can access the equivalent information through your HMRC Personal Tax Account or via the HMRC app. It won't be a formal P60, but it will show the data you need.

Can I Get a Tax Refund With a P60?

Yes - and this is where your P60 earns its keep.

If you've overpaid tax during the year, your P60 is the evidence HMRC needs to process a refund. Remember: more than 5.6 million people overpaid tax in 2023/24, with the average tax rebate now reaching £1,510 according to analysis by RIFT Tax Refunds.

When might you have overpaid?

• You were on the wrong tax code for part of the year
• You started or left a job mid-year
• You had irregular income (commissions, bonuses)
• You took unpaid leave or a career break
• You had multiple employments simultaneously

How to check:

• Look at the total tax paid on your P60
• Compare it to what you should have paid based on your income and tax-free Personal Allowance (currently £12,570 for 2025/26)
• If the numbers don't match, you may be owed money

You can use your HMRC Personal Tax Account to check whether you've overpaid, or speak to an accountant who can review it properly.

Not sure if you are owed money? Debitam can help you find out in minutes.

What Is a P60 for Self-Employed People?

If you're a sole trader, you won't receive a P60 - full stop. You don't draw a salary through PAYE, so there's nothing to report in that format.

If you're the director of a limited company and you pay yourself a salary, the rules are different. You're technically an employee of your own company, which means you must issue yourself a P60 through your company's payroll

This is a detail that catches a lot of new limited company directors off guard. If you're unsure whether this applies to you, it's worth speaking to an accountant sooner rather than later.

Frequently Asked Questions About the P60

1. What are P60s used for beyond tax refunds?

Beyond reclaiming overpaid tax, P60s are widely used as proof of income - for mortgage applications, rental agreements, loan applications, and tax credit claims. Banks and lenders consider them one of the most reliable income verification documents available.

2. Can I get a digital P60 (P60 online)?

Yes. Many employers now issue P60s electronically through payroll portals, including those generated via software like Sage. A digital P60 carries the same legal weight as a paper one. Download it and save it somewhere secure.

3. What if my P60 looks wrong?

If the figures don't match your payslips or your own records, contact your employer first. If the issue relates to your tax code or HMRC records, contact HMRC directly via gov.uk/contact-hmrc.

4. How many years of P60s should I keep?

Keep them for at least six years. HMRC can investigate your tax affairs going back that far, and having your P60s on hand makes any enquiry significantly easier to resolve.

5. Does receiving a P60 mean I need to file a Self Assessment?

Not automatically. Most employees are taxed entirely through PAYE and don't need to file a Self Assessment. However, if you have additional income sources - rental income, freelance work, investments - you'll need to file one, and your P60 will be an important source document.

TL;DR - P60 Summary

A P60 is an annual certificate issued by your employer every May, summarising your total pay, income tax, and National Insurance contributions for the tax year. If the figures don't match what you actually paid, you may be owed a refund - and your P60 is the document HMRC needs to process it.

• What it is: An annual certificate summarising your pay, income tax, and NI contributions
• Who gets one: Employees still on payroll on 5 April each tax year
• P60 deadline: Issued by 31 May each year
• What to do with it: Check it against your payslips, keep it safe, use it for refunds, mortgages, and Self Assessment
• Self-employed (sole trader): You won't receive one
• Limited company director: You must issue one to yourself via payroll
• Lost yours: Request a replacement from your employer or check your HMRC Personal Tax Account

How Debitam Can Help

Understanding your P60 is one thing. Making sure your tax affairs are actually in order is another.

At Debitam, we work with employees, company directors, and self-employed individuals across the UK to review tax records, identify overpayments, and handle everything from payroll compliance to Self Assessment filing. If your P60 is raising questions - or if you haven't looked at yours properly in years - now is a good time to fix that.

Don't leave money on the table. Speak to a Debitam accountant today.