PAYE Forms: Understanding P60, P45, P11D

What are the PAYE Tax forms?

 

PAYE (pay as you earn) forms are used by businesses to deduct income tax and National Insurance contributions from an employee’s paycheck. For them to conduct the deductions, employers need the following forms: P60, P45 and P11D.

 

P60 Explained

 

What is a P60?

In basic terms, a P60 form is a summary of pay in that tax year that includes the tax that has been taken from you. A P60 can be used as evidence for how much tax you have paid. It is also used when trying to claim back overpaid tax, applying for tax credits, and when applying for loans and mortgages as a proof of income.

 

How do I get a P60?

 

A P60 should be sent to you by your employer at the end of the tax year. The tax year runs from 6th April through to 5th April. You should receive your P60 at the latest on the 31st of May, any longer than that, you should contact HMRC.

 

I’ve lost my P60, what do I do?

 

If you have lost your P60, you should ask your employer for a copy and they will send you a replacement. This is because your employer is required by law to keep your P60 from previous years dating back up to 3 years. It is also suggested that you keep an electronic P60. This is because it is more secure and, in cases where you lose your P60, you have a copy easily available to you.

 

P60 or P45?

 

Sometimes people can be confused between a P60 and a P45 and are unclear on the differences. A P60 is given at the end of each year and a P45 is given to you when you leave a job.

 

The confusion could arise as they both contain details on your pay and the tax you’ve paid.

 

P45 Explained

 

What is a P45?

 

A P45 document is needed when you have left a job. When you leave a job, your former employer should send you a P45 form. This form will outline all your earnings from the financial year and all the taxes paid by you in that year.

 

A P45 has 4 parts to it.

 

• Part 1 – is given to your employer that then sends it to HMRC
• Part 1A – is kept by you for your own personal records
• Part 2 – is to be given to your new employer
• Part 3 – is also to give to your new employer

 

Remember, it is your former employer's responsibility to give you a P45 form.

 

How do I get a P45?

 

Your old employer is legally required to send you your P45 document. Once you have requested your P45, the employer has around 6 weeks to issue you your P45.

If your previous employer won’t give you a P45 then you will have to chase them with a reminder. If after contacting them, they still do not send you it, then you should contact HMRC.

 

I’ve lost my P45, what do I do?

Unfortunately, if you’ve lost your P45, you can’t replace it. Even if your employer lost it or it was lost in the post.

If you are starting a new job without a P45 then your employer will have you fill out a Starter Checklist. A starter checklist is a document outlining your personal financial information.

A P46 form was previously used when a P45 wasn’t available however, this is now replaced by the starter checklist.

 

P11D Explained

 

What is a P11D form?

A P11D tax form is needed when reporting about your ‘Benefits in Kind’. These are any benefits that are received from employment but are not included as part of your reported salary. These benefits are things such as company cars, private medical insurance, mileage allowance etc. A P11D form is filled out to show how much each of your benefits is worth and then document is then sent to HMRC.

 

But what if you have no benefits to report?

If this is the case, then nil forms are used. Remember, even if you have no benefits that tax year, you still must submit a nil report to HMRC. The deadline for submitting the P11D form is 6th of July. If the form is submitted late then a monthly penalty of £100 will be sent from HMRC until the P11D forms are filled in.

What happens if I lose my P11D?

If you happen to lose your P11D, you can ask your employer for a replacement copy. If for whatever reason, your employer can not replace your P11D, then you can get a copy from HMRC.