P45 vs P60 – Understanding the Difference Between These Essential Tax Documents
If you work in the United Kingdom, you've likely heard of P45 and P60 forms. These are two of the most important tax documents you'll encounter during your working life, yet many people confuse the two or don't fully understand what each one is for. Whether you're starting a new job, leaving an employer, filing your self-assessment tax return, or applying for a mortgage, knowing the difference between a P45 and a P60 is essential.
In this comprehensive guide, we'll explain exactly what P45 and P60 documents are, when you receive them, what information they contain, why they matter, and what to do if you lose one.
What Is a P45?
A P45 is a tax document that your employer is legally required to give you when you leave a job. The name "P45" comes from the form number used by HMRC (Her Majesty's Revenue and Customs). It serves as an official record of the tax you've paid on your salary during the current tax year up to the date you left that employment.
When Do You Receive a P45?
You should receive your P45 from your employer on or shortly after your last day of work. This applies whether you resign, are made redundant, are dismissed, or your fixed-term contract ends. Your employer must provide this document – it is not optional. If you don't receive it within a reasonable timeframe (typically within a couple of weeks), you should follow up with your former employer's payroll department.
What Information Does a P45 Contain?
Your P45 is divided into multiple parts and contains the following key information:
- Your full name and National Insurance number
- Your tax code at the time of leaving
- Your leaving date from the employment
- Your employer's name and PAYE reference number
- Total pay earned in the current tax year (up to your leaving date)
- Total tax paid in the current tax year (up to your leaving date)
- Whether you're receiving a student loan deduction
Parts of a P45
A P45 has four parts:
- Part 1: Sent by your employer to HMRC
- Part 1A: For you to keep for your own records
- Part 2: Given to your new employer (or to HMRC/Jobcentre Plus if you're claiming benefits)
- Part 3: Also given to your new employer
What Is a P60?
A P60 is an end-of-year tax certificate issued by your employer. It summarises your total earnings and the total tax and National Insurance contributions deducted from your pay during the entire tax year (6 April to 5 April the following year). Think of it as your annual tax receipt from your employer.
When Do You Receive a P60?
Your employer must issue your P60 by 31 May following the end of the tax year. So for the tax year ending 5 April 2026, you should receive your P60 by 31 May 2026. You will only receive a P60 if you are still employed by that employer on the last day of the tax year (5 April). If you left before that date, you would have received a P45 instead.
What Information Does a P60 Contain?
A P60 includes the following details:
- Your full name and National Insurance number
- Your employer's name and PAYE reference
- Your tax code
- Total pay for the tax year
- Total income tax deducted during the tax year
- National Insurance contributions (both employee and employer)
- Student loan deductions (if applicable)
- Statutory pay received (maternity, paternity, sick pay, etc.)
Key Differences Between P45 and P60
While both documents relate to your tax and earnings, they serve different purposes at different times:
- Timing: A P45 is issued when you leave a job; a P60 is issued at the end of each tax year
- Coverage period: A P45 covers your earnings from the start of the tax year to your leaving date; a P60 covers the entire tax year
- Who receives it: You get a P45 whenever you leave any employment; you get a P60 only if you're still employed on 5 April
- Purpose: A P45 ensures your new employer uses the correct tax code; a P60 is used for tax returns, loan applications, and financial records
- Multiple copies: You can have multiple P45s in one tax year (one from each job you leave); you typically receive one P60 per employer per year
Why Do You Need These Documents?
Uses for Your P45
- Giving to your new employer to ensure the correct tax code is applied
- Claiming Jobseeker's Allowance or other benefits if you become unemployed
- Filing a self-assessment tax return if you're self-employed or have additional income
- Ensuring you're not put on an emergency tax code at your new job
Uses for Your P60
- Completing your self-assessment tax return
- Applying for a mortgage or loan (lenders often request P60s as proof of income)
- Claiming tax refunds if you've overpaid tax
- Applying for tax credits or benefits
- Proving your income for rental applications
Your P60 works hand-in-hand with other financial documents like your payslips and bank statements to provide a complete picture of your financial situation.
What to Do If You Lose Your P45 or P60
Lost P45
Unfortunately, HMRC does not issue duplicate P45 forms. If you've lost your P45, you have a few options:
- Ask your new employer to contact HMRC to obtain your tax details
- Complete a "starter checklist" (formerly P46) for your new employer, which they can use to set up your tax code
- Contact HMRC directly to ensure your records are accurate
- Use our P45/P60 replacement service to obtain a professionally formatted replacement document
Lost P60
Your employer is not legally required to issue a replacement P60. However, most employers will provide a copy or a letter confirming the same details. You can also:
- Check your HMRC online account, which shows your tax records
- Request the information from your employer's payroll department
- Use our replacement P45/P60 service for a quick and professional solution
We provide P45 and P60 replacement documents across multiple regions, including the UK, USA, Australia, and Ireland.
How Long Should You Keep P45 and P60 Documents?
HMRC recommends keeping your tax documents for at least 22 months after the end of the tax year they relate to. However, if you're self-employed or file self-assessment returns, you should keep them for at least 5 years. For mortgage applications and other major financial decisions, having several years of P60s available is extremely useful.
Final Thoughts
Understanding the difference between a P45 and P60 is essential for managing your tax affairs correctly. Your P45 ensures a smooth transition between jobs, while your P60 provides a comprehensive annual summary of your earnings and tax paid. Both documents play crucial roles in financial applications, tax returns, and benefits claims.
If you've lost either document or need a replacement, our team at Replace Bank Statements can help. Explore our full range of services, contact us with any questions, or place an order today to get the documents you need.