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Payroll Documents · Annual

How to read a P60

Your employer must give you a P60 by 31 May each year covering the previous tax year. It's the single most useful tax document most employees ever receive — but most people file it without reading it. Here's what every box on it means, and the four things worth checking before you put it away.

What a P60 is and why it matters

A P60 is the year-end summary of pay and tax that an employer must give every employee who was on the payroll on 5 April. Legally, it has to reach you by 31 May. It is the official record of three things HMRC may ask you to prove later: your gross pay for the year, the income tax taken via PAYE, and the National Insurance you paid on Class 1 contributions.

You will need it for: Self Assessment, claiming a tax refund, applying for a mortgage, claiming tax credits or Universal Credit, claiming disability or housing benefits, and applying for student finance for a child. Keep every P60 you ever receive for at least six years (HMRC's standard look-back period for assessments) — many people keep theirs forever, and the storage cost is roughly zero.

Box-by-box: what each section actually says

The standard HMRC P60 layout has not changed materially in years. The boxes you care about are:

The four checks worth doing before you file it

  1. Gross pay matches your last March payslip's "year-to-date" gross. If your March payslip shows YTD gross of £42,103.45 and your P60 shows £41,980, somebody made a posting error. Most likely candidates: a March bonus paid after the cut-off date, or a correction to a previous month that went through but never updated the YTD totals on the payslip.
  2. Tax code on the P60 matches what your employer was actually using. If the P60 shows 1257L but you remember being on a K-code or BR for part of the year, that's fine — but make sure the underlying total tax figure looks right. The tax code decoder explains what each code means.
  3. NI category letter is correct. A is the standard adult employee. B was for married women paying reduced rate (almost extinct). C is for employees over State Pension age (no NI). H is for apprentices under 25. If the letter looks wrong, payroll has miscoded you and may have over- or under-deducted NI for the entire year.
  4. Total tax taken is roughly what the tax calculator says it should be for that gross income, with your tax code. If the variance is more than ~£200 either way, something is worth investigating — usually it is benefits-in-kind being collected via your tax code (which reduces your personal allowance and increases tax) or a refund still owed from a previous year.

If the numbers are wrong

The single right answer for "my P60 is wrong" is: contact your employer's payroll team first. They issue the P60 and they can issue a corrected one (sometimes called a "P60 substitute" or "amended P60"). HMRC cannot correct a P60 — only the employer can.

If you have left the employer and they will not respond, you can write to HMRC with the correction. They will not change the P60 itself but they will adjust their record of your pay and tax for the year, which is what matters for any refund or assessment. Use the HMRC letter decoder if you receive correspondence back you don't understand.

What to do with it after you have read it

Sources

HMRC: P60 — guidance for employees · Check your Income Tax for the current year. UK Tax Drag is educational and not regulated financial advice — see the content disclaimer.

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