P60 and P45 Explained UK 2026/27: What They Are and What To Do With Them

What Is a P60?

A P60 is an end-of-year tax summary issued by your employer. It shows everything HMRC needs to know about your employment income and PAYE deductions for a completed tax year. The 2025/26 P60 covers 6 April 2025 to 5 April 2026 and your employer must provide it by 31 May 2026.

The P60 is one of the most important financial documents you receive as an employee. Hold on to them -- you may need them for years.

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What Information Is on a P60?

A P60 typically includes:

• Your full name, NI number and tax reference
• Your employer's name, address and PAYE reference
• Total pay for the year (gross)
• Total income tax deducted under PAYE
• National Insurance contributions -- both employee and employer amounts
• Your tax code at 5 April
• Statutory pay received (SSP, SMP, SPP etc.)
• Student loan deductions (if applicable)
• Any pension contributions deducted via payroll

If you had more than one job during the year, you receive a separate P60 from each employer you were still working for on 5 April.

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Why You Need Your P60

Checking You Have Paid the Right Tax

The most important use of your P60 is to verify that you have paid the correct amount of income tax and NI during the year. Compare the figures with your payslips. If the numbers differ significantly, contact HMRC or your payroll department.

Filing a Self Assessment Tax Return

If you complete a Self Assessment return, your P60 gives you the pre-filled income and PAYE figures for Box 1 and Box 2 of the employment section. You must enter these accurately -- HMRC already holds the data and cross-checks it.

Tax Refund Claims

If you believe you have overpaid tax -- because you were on an emergency code, had multiple jobs, or stopped work mid-year -- your P60 is the key document for reclaiming the overpayment. You will need it if you write to HMRC or use form R40 (for repayments of tax on savings and investments).

Proof of Income

Lenders, mortgage providers, letting agents and government benefit assessors may ask for P60s as proof of income. They are generally accepted as evidence of earnings for the prior year. Most lenders ask for the most recent two or three P60s.

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What Is a P45?

A P45 is a leaving document issued by your employer when your employment ends -- whether through resignation, redundancy, retirement or dismissal. It must be issued promptly when you leave.

The P45 has four parts:

• Part 1 -- your employer sends this to HMRC electronically when you leave
• Part 1A -- given to you to keep
• Parts 2 and 3 -- you give these to your new employer when you start

What Is on a P45?

• Tax year and leaving date
• Employer name and PAYE reference
• Your name, address and NI number
• Your tax code at leaving date
• Total pay earned in the current tax year (from 6 April to leaving date)
• Total income tax paid in the current tax year
• Whether you were on a week 1/month 1 (emergency) basis

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What To Do With Your P45 When You Start a New Job

Give Parts 2 and 3 of your P45 to your new employer as soon as you start. This allows them to:

• Use the correct tax code from your first pay period
• Calculate your tax correctly on a cumulative basis (so you get the benefit of tax already paid earlier in the year)
• Avoid putting you on an emergency code

If you do not hand in your P45, your new employer will put you on a starter checklist (previously called a P46). You will be asked to confirm whether this is your only job, a second job, or your first job since leaving education. Your answer determines the temporary code used until HMRC issues an official one.

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What If You Start a Job Without a P45?

If you have lost your P45 or it has not arrived from your previous employer, give your new employer a completed starter declaration (the starter checklist). Answer the questions honestly:

• Statement A -- this is your first job since 6 April and you have not received any taxable state benefits (code 1257L applied)
• Statement B -- this is now your only job, but you have had another job or received taxable benefits since 6 April (code 1257L week 1/month 1)
• Statement C -- you have another job or pension in addition to this one (code BR -- basic rate on all earnings from this job)

Choosing the wrong statement leads to underpayment or overpayment of tax, so be accurate.

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What If You Lose Your P60?

Your employer is legally required to provide the original P60 but is not required to issue a duplicate with the same format. However, most payroll departments or HR systems can provide:

• A duplicate statement showing the same figures
• A statement of earnings letter on company headed paper
• Access to historical payslips showing year-to-date figures at April

You can also find income and tax data in your Personal Tax Account at gov.uk. HMRC's records show the figures reported by your employer. While not identical to a P60, this is usually sufficient for most purposes.

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P60 vs P60 Substitute

Some employers issue P60s digitally through payroll portals (like Workday, ADP or Sage). These electronic P60s are legally valid and accepted by HMRC, banks and mortgage lenders. If your employer uses a portal, download and save your P60 as a PDF each year.

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P45 When You Are Made Redundant

If you are made redundant, your employer must still issue a P45 on your last day of employment (or shortly after). The P45 will show earnings and tax up to your leaving date.

Redundancy pay has specific tax treatment:

• The first £30,000 of a genuine redundancy payment is tax-free
• Amounts above £30,000 are taxed as employment income and should appear in your payslip (and therefore affect your P60 or P45 figures)
• Payments in lieu of notice (PILONs) are taxable in full from 6 April 2018 onwards

If your redundancy payment pushes you into a higher tax band for the year, your P45 will show the increased tax deducted.

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Using P60 Figures in Self Assessment

If you complete a Self Assessment tax return, you declare employment income in the "Employment" pages. The key figures from your P60 are:

• Box 1: Total pay from this employment
• Box 2: UK tax taken off

HMRC pre-populates these boxes with what your employer reported. You can verify the employer's figures match your P60 and correct any discrepancies.

Always keep P60s for at least four years after the end of the relevant tax year -- this is the standard HMRC enquiry window for individuals, and longer (6 years) if you are self-employed.

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Key Dates and Facts for 2026/27

Both documents are central to UK PAYE and keeping them safe will save you time and stress when dealing with HMRC, applying for mortgages or completing tax returns. If anything looks wrong on either document, address it promptly -- errors on P60s and P45s can persist into future tax years if not corrected.