Understanding your P60 as an Umbrella Company Employee
If you’re new to contracting under an Umbrella Company, you may be wondering what role your P60 plays, and when you’ll receive it. In this blog we take a closer look, to help you understand your P60.
What is a P60 form?
A P60 is an official document that is issued to employees at the end of the tax year. It is generated by your employer, in this case SG Umbrella. It provides employees with a comprehensive overview of their income, tax paid and National Insurance contributions. It is an important document and should be retained.
What does a P60 look like and what information does it contain?
Your P60 is a straightforward document that will be emailed to you as a PDF will all the information contained on an A4 page. It will be orange in colour, making it easy to recognise immediately.
Here is the information you can expect to find on your P60:
- Employee name
- Employee National Insurance number
- Employee payroll number
- Total earnings for the year
- Income tax deducted
- Tax code
- Statutory payments, if applicable
- Student & postgraduate loan deductions, if applicable
- Employer’s address and PAYE reference
Why is a P60 important?
A P60 acts as proof of income and the tax paid, making it an important document for a variety of different purposes. Employees may use their P60 for the following purposes:
- Verifying that tax payments are accurate
- Completing a self-assessment tax return, if applicable
- Claiming back overpaid tax from HMRC
- Applying for a loan or mortgage
- Accessing certain benefits, like tax credits
What’s the difference between a P45 and a P60?
Both a P45 and a P60 relate to employee taxes, but they are different documents with different uses.
A P45 is only provided to employees when they leave a job, summarising their earnings and tax deductions up to their leaving date.
A P60 is provided annually and summarises the entire tax year, covering both current and previous positions, providing they fall within the same tax period.
As an example, if an individual was employed in job X from the start of the tax year to September, then in job Y for the remainder of the tax year, the P60 would include earnings and deductions from both these jobs, so as long as a P45 was provided detailing the previous jobs earnings.
When will I receive my P60?
Your P60 will be issued after the end of the tax year and the deadline for receipt is the 31st May. We aim to email your P60 to you week commencing 7th April 2025.
How SG Umbrella can help
If you have any questions surrounding your P60, get in touch with the SG Umbrella team. They’re here to ensure you’re confident in what your P60 is, and how it can be used.
Note: All the information and advice in this blog post was correct at the time of writing.
