Published on May 27th, 2014 | by Rob Stebbings
P60 Deadline Is Fast Approaching
By the end of this month, all employees should have received their P60 from their employer.
From an employee perspective it is important that we do not destroy the P60 document issued. They form a vital part of the proof that tax has indeed been paid detailing an employee’s final tax code and shows their total pension and/or earnings for the year, as well as the year’s total tax deductions and National Insurance contributions.
The P60 is also a vital document needed for instances when querying a tax code, claiming a tax refund or completing a tax return as well as instances when our personal circumstances change.
For example, when it comes to making a new mortgage application, a P60 is amongst the vital paperwork required as evidence of ability to repay the loan. As well as a P60, prospective mortgage applicants need to be able to present their last three monthly payslips, three months of bank statements as well as any relevant pension and investment statements.
For such occasions as this it is important to note that self-employed people should remember to safely file and archive records for up to six years after the relevant tax year. If the unfortunate scenario does arise where a P60 form is lost or misplaced, it is the responsibility of an employer to source a replacement copy. The P60 form is valid in either a paper or electronic version these days.
Next on the horizon in terms of key tax dates for 2014 will be the deadline for expenses and benefits annual return for the 2013-14 tax year. By 6th July, employers must submit forms P9D (records of employee earnings, expenses and benefits) and P11D (employer’s declaration) to the HMRC. Copies of these forms must also be provided to each employee. So it’s certainly worth ensuring all those record books are kept up to date and accurate well in advance.