TL;DR: A P45 and a P60 are both PAYE forms summarising pay and tax, but they cover different periods and are issued at different times. A P45 is given when an employee leaves a job: it shows pay and tax in the current tax year up to the leaving date, plus the leaver's tax code. A P60 is given to anyone still on the payroll on 5 April: it shows total pay and tax for the full tax year just ended. The leaver gives parts of the P45 to a new employer or HMRC; the P60 is kept as proof of income for the year. Employers must issue P60s by 31 May after the tax year ends. Both forms are now usually digital but should be retained for at least the time HMRC's records can be challenged.
Last reviewed May 2026
P45 and P60 are two of the most familiar PAYE forms but their purposes are often confused, particularly by new employees and people changing jobs. They are not interchangeable. Each plays a different role in the PAYE system and is needed at a different point in the employment cycle.
The simplest distinction is timing. A P45 is issued when an employee leaves a job and summarises the position from the start of the tax year up to the leaving date. A P60 is issued at the end of the tax year to anyone still on the payroll on 5 April and summarises pay and tax for the whole year. The two forms cover different events and serve different purposes.
This guide explains exactly what each form is, what it shows, who needs to keep it, and what to do if either form is missing or wrong.
The P45: leaving a job
A P45 is the statement of an employee's pay and tax up to the date they leave a job. The employer prepares it from the payroll system and gives it to the leaver after the final pay date in the employment.
The P45 has four parts: Part 1 is sent by the employer directly to HMRC; Parts 1A, 2 and 3 are given to the leaver. Part 1A is for the leaver's own records; Parts 2 and 3 are intended to be given to the new employer when the leaver starts their next job, who then uses Part 3 to inform HMRC and uses Part 2 to set up the payroll record.
The information shown on the P45 includes the leaver's name, National Insurance number, leaving date, employer's PAYE reference, the tax code used at the time of leaving, total pay in the current tax year up to the leaving date, total tax deducted in that period, and Student Loan deductions if applicable. It does not show pay or tax from previous tax years.
The P60: the year-end summary
A P60 is the year-end statement of pay and tax for someone still on the payroll on 5 April. It is given by the employer to each such employee by 31 May after the end of the tax year. The P60 covers the full tax year (6 April to 5 April).
The information on the P60 includes the employee's name, National Insurance number, the employer's PAYE reference, total pay for the year, total tax deducted, total Student Loan deductions, and the totals of any statutory payments (Statutory Sick Pay, Statutory Maternity Pay and so on). It also shows the National Insurance contributions paid in the year.
The P60 is the primary piece of evidence an employee has of their pay and tax for the year. It is regularly requested by lenders applying for mortgages, by HMRC on enquiry, by Student Loan lenders, and by the immigration authorities for visa or settled-status applications. Employees should keep their P60 for several years.
The differences in summary
Three main differences capture the contrast. First, the timing: a P45 is issued on leaving a job (which can happen at any time), while a P60 is issued at the end of the tax year (always in April or May, no later than 31 May).
Second, the scope: a P45 covers only the current tax year up to the date of leaving the particular employment; a P60 covers the whole tax year for the particular employment that the employee was still on at 5 April.
Third, the use: a P45 is partly given to the new employer to set up the payroll correctly; a P60 is for the employee to keep as evidence of the year's pay and tax. Both are important; both serve different functions.
What to do with a P45 from a previous job
Parts 2 and 3 of the P45 should be given to a new employer at the start of a new job. The new employer uses the information to put the new employee on the right tax code from their first pay date and to feed the year-to-date pay and tax into the payroll system. Without this information, the employer must apply an emergency code and the new employee will often pay too much tax in the first few pay periods.
If the leaver is not going straight into a new job, Parts 2 and 3 of the P45 are needed to make a tax repayment claim if appropriate (using form P50 if leaving employment for at least four weeks and not returning, or other circumstances), or to give to HMRC for any other purpose. Part 1A is kept by the leaver in any event.
The P45 is normally produced once and is not reissued by the employer if lost. If the P45 is missing, the new employer asks the new starter to complete the new starter checklist (formerly form P46) and applies the resulting code. HMRC sorts the position out once it has the right information.
What to check on a P60
The figures on the P60 should match the employee's own records of pay and tax. Three things are worth a routine check: that the total pay is correct (compare with the total of the year's payslips), that the total tax is correct, and that the National Insurance contributions are reasonable for the pay level.
Where the figures look wrong, the first port of call is the payroll department of the employer. Errors are usually clerical and can be corrected by the employer, who issues a corrected P60 if needed.
A P60 from a workplace pension provider works the same way: the pension provider issues a P60 each year showing the year's pension and tax. Pensioners with multiple income sources will receive a P60 from each source that has paid them in the year.
Digital P45 and P60, and how long to keep them
Most employers now issue P45 and P60 forms electronically rather than on paper, often through the same payroll portal that delivers payslips. The electronic form is fully equivalent to the paper version and is accepted by HMRC, lenders and other organisations. Employees should download and save copies in a secure place; portal access often ends after the employment terminates.
HMRC's record-keeping guidance recommends that individuals keep their pay records for at least 22 months after the end of the relevant tax year (the standard self assessment enquiry window), and longer if they are in self assessment, where the recommended retention period is at least five years after the 31 January deadline for the relevant return.
For mortgage applications, lenders typically ask for the most recent P60 and may also ask for one or two earlier P60s. Visa and settled-status applications may ask for several years' P60s as evidence of UK earnings. Keeping at least the last five years of P60s is generally a sensible default for working-age employees.
Disclaimer: This article is general information about the P45 and P60 forms in the UK PAYE system. It is not personal tax advice. Specific questions about an individual's pay and tax should be directed to the employer's payroll department or to HMRC. Anyone unsure about their tax position should check the personal tax account on GOV.UK.
Frequently asked questions
What is the difference between a P45 and a P60?
A P45 is issued when an employee leaves a job and shows pay and tax in the current tax year up to the leaving date. A P60 is issued at the end of the tax year to anyone still on the payroll on 5 April and shows pay and tax for the full tax year. The P45 is partly given to the new employer; the P60 is kept by the employee as evidence of the year's earnings.
By when must my employer give me a P60?
Employers must give P60s to all employees who were on the payroll on 5 April by no later than 31 May after the end of the tax year. The form is normally delivered electronically through the payroll portal but can be on paper.
What do I do with the P45 from my old job?
Give Parts 2 and 3 of the P45 to your new employer when you start a new job. The new employer uses the information to apply the right tax code from your first pay date and to set the year-to-date pay and tax in the payroll system. If you do not have a P45, complete the new starter checklist instead.
Can I get a replacement P45 if I lose mine?
Employers are not generally required to issue a replacement P45. If you have lost yours, complete the new starter checklist with your new employer instead. The information will allow HMRC to issue the right tax code, although the position may take a pay period or two to settle.
Do I need to keep my P60 forever?
HMRC recommends keeping pay records for at least 22 months after the end of the relevant tax year (longer if you are in self assessment). For practical purposes (mortgage applications, visa applications, future evidence of earnings) keeping at least the last five years of P60s is generally sensible.
How we verified this
The role of P45 and P60 forms, the timing of issue, the parts of the P45 and the P60 deadline of 31 May reflect HMRC's published PAYE manual and the Income Tax (Pay As You Earn) Regulations 2003. The use of the new starter checklist (formerly form P46) and the role of the personal tax account in correcting tax codes reflect current HMRC processes. Record retention recommendations reflect HMRC's published guidance on keeping records. Figures and processes should be reconfirmed on GOV.UK.
