A P60 is an HMRC form filled out by Employers. It is a document issued to each Employee showing their:
- Gross pay
- Tax deducted
- National Insurance
Each P60 covers one tax year. A tax year runs from 6 April to 5 April. So for that reason they are only issued once a year within 6 weeks of the end of the tax year.
It is a legal requirement for every Employer to give their Employees an HMRC P60 form.
Should You Get a P60 If You Are Self Employed
If you are self employed and do not carry work for anyone who pays you through payroll then you will not get a HMRC P60 Form.
Remember this form is only relevant if an Employer has deducted tax on your behalf, so you have a record of what they have taken.
When you’re self employed you need to pay tax on everything you earn. It is your responsibility to work out your own tax and declare it on a self assessment tax return form.
Getting a P60 When You’re Employed and Self Employed
It is very common for someone to be employed and self employed.
In this case you should get a P60 form which details earnings and deductions by your Employer.
The P60 will not include any self employment earnings. In these cases the P60 will be needed when time comes to fill out your Self Assessment Tax Return.
The details from the P60 will need to be included in the Employment Section of the Tax Return. Along with details of the Employer.
Getting a P60 When You’re the Director a Limited Company
Many self employed individuals operate through a Limited Company paying themselves through a payroll scheme.
In this case you will get a P60. It just may be a bit strange because you are both the Employer and Employer. But the legal requirement to issue this form still needs to be followed.