A P60 is an annual summary an employer gives each employee after the tax year ends. It shows total pay, income tax and National Insurance deducted for the year, providing a record used for tax claims, loans and benefit applications.
In one line: A P60 is the year-end statement of an employee's total pay and deductions for the tax year.
How a P60 works
Employers must provide a P60 by 31 May following the end of the tax year on 5 April (HMRC). It consolidates earnings and deductions from one employer into a single figure for the year.
An employee earning 28,000 GBP across the year sees that figure on the P60, alongside the income tax and National Insurance deducted. The document is then used to evidence income or to support a tax refund claim.
Because it summarises a full year, the P60 is often requested by lenders, letting agents and for tax credit or student finance applications as proof of earnings.
P60 vs P45
A P60 is an annual statement given to people still employed at the tax year end. A P45 is given when someone leaves a job partway through the year.
Someone who changes jobs in a year may hold a P45 from the old employer and a P60 from the new one, but only the P60 captures their position across the whole year with that employer.
Primary source: GOV.UK: P45, P60 and P11D forms