Thursday, October 18, 2012

An overview about P60

A P60 form

At the end of each fiscal year, you will receive a P60 form from your employer, which shows your total amount of pay for income tax purposes and how much has been deducted in tax and National Insurance over the tax year. P60 is an important document - and therefore, make sure you keep it safely each time you receive it.

You will need your P 60 form when you want to do your tax return, claim back any tax that you have overpaid, or apply for tax credits. Besides that, the P 60 form also lets you know whether your employer is using the correct National Insurance number and deducting the right amount of National Insurance Contribution. And lastly, you may need it as a proof of your earnings when you want to apply for a mortgage or a loan.

As mentioned earlier, your employer will issue the P60 form at the end of each tax year, which falls on April 5. This is, however, provided you still work for your employer by then. If you are no longer employed before the fiscal year ends, you will only be given a P45 form at the end of your job. Often, employees do not receive their P 60 forms even after the tax year has ended. If you are one of them, do not hesitate to ask for it from your employer as you are entitled to it by law if you still work for the employer.

When receiving your P 60 form, make sure the following information is included in it:
Tax year to 5 April
Employer PAYE reference
Employee's National Insurance number, if known
Employee's name
Employee's payroll number
Pay and tax in previous employment
Pay and tax in 'this' employment
'Total for year' pay and tax
Final tax code including the 'Week 1' or 'Month 1' indicator if applicable
National Insurance Contributions information
Employer's name and address
Statutory Maternity Pay (SMP) paid - if applicable
Statutory Paternity Pay (SPP) paid if applicable
Statutory Adoption Pay (SAP) paid if applicable
Student Loan Deductions in 'this' employment if applicable

It is quite common for employees to lose their P60 forms, or in some cases the forms are rejected because they are damaged or hand written. When one of these happens to you, we can help you replace them. We offer high-quality P60's that are prepared on approved Inland Revenue forms. Basically, you only need to tell us four things:

1.Your employer's full address including postcode
2.Name of your employer's tax district
3.Your employer's tax district number
4.Gross salary paid in that financial year
With this information and our fully computerized payroll system, you are guaranteed to receive accurate results.

Other than that, we also provide payslip calculator on our website that you can use for free. By using this salary calculator you will be able to know whether your employer has been deducting the right amount of tax and National Insurance Contribution from your salary. What you need to key in are details of the gross monthly pay and PAYE coding.

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