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In this P60 Guide we review the steps involved in the end of year return, the aim being to provide an understanding of the end of year payroll process and steps that occur to allow the creation of a P60 End of Year Certificate
At the end of each tax year every employer must send an employment summary to HMRC (Her Majesties Revenue and Customs).
The employment summary must include:
The employment summary is used by HMRC to record and audit the taxable income for each employee. HMRC can then review the various elements and identify whether:
For those employees who have straight forward income and deductions, HMRC will aim to provide most adjustments directly through the manipulation of the tax code. The aim being to provide a standard pay calculation for the employee and avoid any large over/under payments.
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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.