Now that the 2015-16 tax year has ended, employers should have completed their final PAYE submission for the tax year. It is important that employers remember to provide relevant employees with a copy of their P60 form by 31 May 2016.
The P60 is a statement issued to employees after the end of each tax year that shows the amount of tax they have paid on their salary. Employers can provide the P60 form on paper or electronically. Employees should ensure they keep their P60s in a safe place as it is an important record of the amount of tax paid.
In addition, a P60 is required in order that an employee can prove how much tax they have paid on their salary, eg:
- to claim back overpaid tax;
- to apply for tax credits;
- as proof of your income if you apply for a loan or a mortgage.
Employees who have left their employment during the tax year do not receive a P60 from their employer, as the same information will be on their P45.