What is a P60?

P60s are a routine part of the annual payroll cycle for any employer, and a document that employees regularly need for tax, mortgage, and benefits purposes. Despite their commonplace nature, many employers running payroll for the first time are unsure what a P60 is, when it must be issued, and what it contains. Understanding the basics is part of the administrative awareness every UK employer needs.

A P60 is a document provided by an employer to each employee on the payroll at the tax year end. It summarises total pay, Income Tax deducted, and National Insurance contributions paid during that tax year. The P60 is an important record — employees may need it to complete a tax return, claim a tax refund, apply for a mortgage, or prove income for benefits purposes. Employers are legally required to provide it within a defined period after the tax year end.

P60s are generated by payroll software as part of the year-end process, and most modern software produces them automatically once the final payroll of the year has been processed. Employers who outsource payroll will typically have P60s produced and distributed as part of that service. Our guide to payroll year-end for UK employers covers the P60 and other obligations at the end of the tax year.