Don't miss the DEADLINE for your P60 form......If you are an employer or company director with 1 or more employees (including yourself) on your payroll then understanding the P60 form is vital.

This is a mandatory requirement and must be completed by the 31st of May for each employee who is employed at the 5th April.
Your P60 explained for 2020-21 video includes information the form contains, how to navigate it if you also pay yourself via dividends, as well as who does and doesn't need a P60 form.

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⏱️ Time Stamps:
0:18 - What is a P60?
0:53 - What is a P60 used for?
1:25 - What details does the P60 contain?
2:10 - When do you receive a P60?
3:17 - What happens if you leave employment before the 5th April?
4:00 - Limited Company Directors / Shareholders

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At the end of each tax year, which spans from the 6th April to the 5th April, all UK employers need to perform a year end payroll process which involves submitting the final payroll figures to HMRC that cover the entire tax year.
Each employer, including limited company business owners taking a salary will inform HMRC the pay details of anyone they employed throughout the tax year. As part of this process a summary is also generated to be distributed to all the current employees for their own records. This end of year payroll summary is called a P60.

The P60 can be used as evidence of earnings, for reasons such as (but not limited to):

★ Loan applications
☆ Mortgage applications
★Applying for tax credits
☆ Proving income when renting a property

If you are self employed you will not get a P60 form. Instead your income is reported via an annual self-assessment which is also when the tax liability is calculated and later paid. In circumstances where you need to prove your income such as for a mortgage application you can generate what is known as a SA302 form or ask your accountant for this.

The SA302 will summarise all the sources of income declared on your self-assessment tax return. If you are self employed and your business has its own employees on PAYE payroll then you will need to issue each employee with their own P60 but you will not receive one yourself.

We hope this video has helped you to understand the P60 form in a bit more detail and taken you one step closer to knowing your numbers. Let me know in the comments your thoughts on todays video and what topics you'd like me us to cover in the future!

🔴 DISCLAIMER
Our videos are for general guidance, education and empowerment in helping you understand accounting, tax and your numbers. They in no way constitute specific advice to your specific circumstances.