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A P60 is a form used by HMRC. A P60 is issued at the end of each tax year. A P60 contains exact information about how much you have earned PAYE (Pay As You Earn) and NIC's (National Insurance Contributions) you have paid during the specified tax year.
It is your responsibility to check your P60 and claim back any overpaid tax or report underpaid tax.
It is your responsibility to check your P60 is correct. Any errors on your P60 may mean you are due a tax rebate or have to repay additional tax. Check the following areas of your P60 are correct:
Checking that your P60 is correct takes just a few minutes and could save you money on overpaid taxes and/or future frustration with HMRC should they pick up on the error in future years.
Want to know more about P60s? Read a more detail guide to your P60
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The 31 January tax return deadline for online submissions of self-assessment is approaching faster than you think, though remember that you can file your tax return any time between the end of the tax year in April and the following January.
It's certainly not too late to file your return if you are self-employed, you generate income from property, or you run a small business. And it isn't difficult: unless you have particularly complex needs you don't need an accountant. But you do need to act sooner rather than later.
If you're not sure whether or not you need to file a Self Assessment tax return, HMRC has the full details on who is required to file a return, as well as all the relevant deadlines and penalties for each tax year. As a rough guide though, if you've earned money from self-employed work, renting property, or significant savings or investments, you probably need to file a tax return.
The first step is to sign up for Self Assessment if you haven't done so already. You'll need a Government Gateway account, but don't worry: you can set up one during the Self Assessment registration. This will also enroll you in the online Self Assessment service.
Be warned, though, the process isn't immediate: HMRC will have to send you both a Unique Taxpayer Reference (UTR) and an online service activation code through the post. It warns this could take as long as 10 days, so you want to get started at least a week or two before the 31 January tax return deadline to make sure you don't miss it.
You'll need your PAYE details if you have them, as well as accounts of money earned and costs incurred. You'll also need your National Insurance number.
Once you have signed up we'd recommend keeping those details handy somewhere.
When it's time to file your tax return online, you want to head straight to HMRC Self Assessment and log in using your Government Gateway ID.
The online system is surprisingly straightforward and easy to use, despite the long-running jokes about the nightmare of filing your taxes, so we won't go into detailed instructions here, though we do have a couple of quick tips.
We find that it is easier to work out incomings and outgoings in advance of logging in to HMRC and have them handy on a text document or spreadsheet. It's also worth noting that all you have to provide are your overall figures for income and expenditure, not a detailed breakdown - though it's definitely worth keeping that for your own records, and in case HMRC have any questions about your return.
If you are an individual filling in a Tax Return with additional earnings on top of your salary, it is always a good idea to keep hold of your P60 and have it at your side, as lots of relevant data is there.
iCalculator's P60 Guides and P60 Calculators include detailed information and guidance to help you understand your P60, identify key parts of the P60, explain how your P60 is calculated and what information you need to know and understand about a P60 as an employee and employer. Our aim with the P60 guides is to provide insight into the correct completion of a P60, whether it be an audit as an employer to ensure your end of year certificates are calculating correctly or as an employee to check that you have paid the right amount of income tax and, if not, how to claim any overpaid tax back.