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Payroll Documents Decoded

P60 vs P45 vs P11D — the difference, in plain English

Three forms, three purposes, three different times of year. Most UK employees mix them up — usually at the worst possible moment, like the day before a mortgage application. Here's the simple way to keep them straight.

The one-line distinction

If a mortgage broker, accountant or HMRC asks for "your P60", they want the annual summary — not the leaver's slip and not the benefits sheet. Sending the wrong one is a surprisingly common cause of mortgage delays.

P60 in detail

The P60 is the year-end summary. You get one from each employer you were on the payroll with on 5 April. The deadline for issuance is 31 May — most employers send them in mid-May. It shows your total taxable pay, total tax deducted, total NI deducted, total student loan deductions, and the tax code in use on 5 April. The box-by-box P60 walkthrough covers exactly what each section means.

You will need it for: Self Assessment, mortgage applications, tax credit / Universal Credit claims, student finance applications, and proving income for visa or settlement applications. Keep every P60 you ever receive.

P45 in detail

The P45 is the leaver's certificate. Your employer issues it when you leave a job — same day as your last day, usually. It is split into four parts:

If you don't pass the P45 to the new employer (or you don't have one because the previous employment ended in a previous tax year), the new employer fills in a starter checklist — and almost always applies an emergency tax code for the first month or two until HMRC catches up. The emergency tax code explainer covers this exact scenario.

Two important things people miss:

P11D in detail

The P11D lists every benefit in kind you received in the tax year that wasn't taxed via payroll. Your employer files one with HMRC and gives you a copy by 6 July. Common items:

HMRC takes the cash-equivalent figure from the P11D and adjusts your tax code for the next year to collect the additional tax via PAYE — you don't usually pay tax on benefits in a separate cheque, you pay through a slightly higher tax code which collects 20% / 40% / 45% of the benefit's cash equivalent.

If you also file Self Assessment, the P11D figures go onto the employment pages and the SA calculation handles them properly. If you don't file SA, the tax code adjustment is the only mechanism — which is why an unexpectedly low tax code (like 1057L instead of 1257L) is often the result of a P11D from the year before.

The "I left in March" edge case

One scenario causes more confusion than any other. You leave a job on, say, 28 March. Your last employer gives you a P45 covering the year up to 28 March — about 51 weeks of pay. Then you start a new job on 7 April (the new tax year). The new employer:

So in this scenario you end up with: a P45 from the old job, a P60 from the new job, and possibly a P11D from each if either had benefits in kind. Three documents, all relevant, all needing to be kept.

Sources

HMRC: PAYE forms — P45, P60 and P11D. Methodology and editorial review process: methodology.

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