The P60 is an important document that gives you a clear summary of your pay and deductions for the tax year.

It dates back to the introduction of Pay As You Earn (PAYE) in 1944 during World War II. Before PAYE, people typically paid their tax in lump sums, often a year behind, which became difficult to manage at the time. PAYE changed this by deducting tax directly from wages as they are paid.

With that shift, employees needed a clear and reliable way to see what they had earned and paid in tax over the year. The P60 was introduced as a simple year-end summary, bringing everything together in one place.

• Your total gross pay for the tax year
• The amount of income tax you’ve paid
• Your National Insurance contributions
• Your tax code and PAYE reference

Over the years, it has become a standard document issued to anyone employed at the end of the tax year (5 April), overseen by HM Revenue and Customs. While it was once only provided on paper, it can now also be shared digitally, reflecting how payroll systems have evolved.

Although the format has changed over time, its purpose has stayed the same, giving employees a clear record of their earnings and deductions.

A P60 is often used as proof of income, you may be asked for it when applying for things like a mortgage, loan, tenancy or when completing financial checks.

Once issued, please keep your P60 saved in a safe place or securely stored in a folder for future reference.

In terms of timing, employers must issue a P60 by 31 May following the end of the tax year. The tax year runs from 6 April to 5 April, and a P60 is provided to anyone who is on the payroll as of 5 April.

For example:

• Tax year ending 5 April 2026 → P60 must be issued by 31 May 2026

If you leave a job before 5 April, you won’t receive a P60 from that employer. Instead, you’ll be given a P45, which covers your pay and tax up to your leaving date.

Article written by Caroline Jackson, Advo Payroll Manager