What’s a P60 form? A guide for small businesses & self-employed

If you’ve recently started running your own business, or just hired your first employee, the P60 form is one of those things you’ll need to get to grips with pretty quickly. 

But what is it, who needs one, and what do you do with it? Don’t worry — we’ve got you covered.  

Key takeaways:

• A P60 form is an annual summary of your pay and tax deductions, and you’ll need one if you’re on payroll
• If you’re a sole trader, you don’t need to issue a P60 but limited company directors and employers do
• P60s must be issued by 31 May each year, and your payroll software should do the hard work for you
• Losing your P60 isn’t the end of the world — there are ways to get a copy

A P60 form is an official HMRC document that summarises your total pay and the deductions made from it over the course of a tax year (6 April to 5 April). 

It covers everything deducted through PAYE (that’s Pay As You Earn), including income tax and National Insurance contributions. These days, P60s are often issued digitally rather than on paper, but both are equally valid.

Essentially, your P60 form is like an annual payroll report card for tax. It’s proof of what you’ve earned and what you’ve paid to HMRC. And you’ll need it if you want to make any tax–based claims, like: 

• Claiming back any overpaid tax 
• Applying for tax credits 
• Applying for a mortgage or loan — banks and mortgage lenders often ask to see your P60 as it’s one of the most reliable ways to confirm your income

It’s worth noting that the P60 is a snapshot of a full tax year — it’s not updated mid-year. So if your pay changes after 5 April, that’ll show up on next year’s form instead.

That depends on how your business is set up — so let’s break it down.

If you’re a sole trader: you won’t need to issue a P60. As a sole trader, you aren’t paying yourself a salary through payroll. Instead, you simply draw money from your business profits and report your income through a Self Assessment tax return. No PAYE, no P60. 

Good to know: for sole traders, your Self Assessment tax return serves a similar purpose to a P60 — it’s your annual record of income and tax owed 

If you’re a director of a limited company: if you’ve registered for PAYE, you’ll need to issue yourself a P60 at the end of each tax year, just like any other employee on your payroll.

And, if you have employees: it’s your legal responsibility to issue each employee with a P60 at the end of the tax year. If you don’t, you may receive a fine from HMRC (up to £300 initially, followed by an additional £60 per day  — yikes) and you also risk damaging your business’s reputation.

Quick summary:

• Sole trader: no P60 needed
• Limited company director (salaried via PAYE): issue yourself a P60
• Employer with staff: must issue a P60 to every employee by 31 May

A P60 pulls together all your payroll information for the full tax year. Here’s what you’ll find:

• Your full name and National Insurance number
• Total pay in the tax year
• Total income tax deducted
• Employee National Insurance contributions
• Student loan deductions, if applicable
• Details of your employer, including their PAYE reference number

All of this information is taken from your payroll software, which is a good reason to make sure your records are up to date and accurate throughout the year!

You definitely don’t want errors on your P60 as this can disrupt or cause delays to tax returns, mortgage applications, or anything else that requires proof of income. 

If you do spot an error on your P60, contact your employer (or check your payroll software if you’re a director) — it will need to be corrected before you use it for any official purpose.

These are easy to mix up, but they serve very different purposes. 

A P60 is issued once a year, after the end of the tax year (5 April), to every employee still on your payroll. If you’re a limited company director, this includes you. It summarises every employee’s earnings and deductions for the whole year.

A P45 is issued when an employee leaves your business. It covers the period from the start of the tax year up to their final day of employment, and it’s what they’ll hand over to their next employer so HMRC can keep their tax records up to date.

The key difference: a P60 is issued to current employees. A P45 is issued to leavers. So, if an employee leaves before 5 April, you don’t need to issue them a P60. Their P45 is their proof of pay for that period. 

If you’re an employee (or a salaried director), you should receive your P60 by 31 May following the end of the tax year. 

For example, for the 2025–2026 tax year (which ends on 5 April 2026), your P60 must be issued to you by 31 May 2026.

If you’re the one issuing P60s, to yourself or to employees, that same 31 May deadline applies to you too. It’s a legal requirement, so it’s worth putting it in your diary well ahead of time.

HMRC won’t send P60s on your behalf. It’s your responsibility as the employer to generate and distribute them (usually through your payroll software).

The answer depends on whether you’re receiving a P60 or issuing one, or both.

If you’re a salaried employee: your employer should provide your P60 automatically by 31 May. These days, many businesses issue them digitally — often via an online payroll portal or by email. If your employer uses payroll software, the P60 will usually be generated automatically at year–end.

If you’re a limited company director paying yourself through PAYE: you’ll need to generate your own P60 using payroll software. Once you’ve run your final payroll for the tax year, the software should produce the form for you — you can then save it digitally or print it off.

If you have employees: run your year–end payroll through your software and issue each employee their P60 by the 31 May deadline. Some software lets you distribute them digitally, which saves a lot of time.

Good to know: if you haven’t yet set up payroll for your business, you’ll first need to register for PAYE with HMRC. 

The P60 form might sound a bit official and intimidating, but it’s really just a bit of admin at the end of each tax year. 

As mentioned, if you’re a sole trader, you can breathe easy — the P60 form doesn’t apply to you. If you’re a limited company director or employer, make sure your payroll software is doing the heavy lifting and keep an eye on that 31 May deadline.

And if you’re still in the early stages of setting up, we can help with that too. Our company registration service gets you up and running within 24 hours. Once you’re registered, a dedicated smart business current account that keeps your business and personal finances separate will give the building blocks to run and grow your new business. 

Want more small business guidance? Head over to our resource hub, where you can find all our latest tips and advice. 

If you’ve lost your P60, your employer should be able to provide a replacement or a copy. If you’re a director of your own limited company, check your payroll software, as most systems store P60s digitally. It’s also worth knowing that your personal tax account at GOV.UK shows your income and tax details for previous years — this can often serve the same purpose if you’re stuck. 

Yes. Many employers now issue P60s digitally rather than on paper, either through payroll software, an employee portal, or by email. If you’re a limited company director, your payroll software should generate a digital P60 at year–end. 

If you’re a salaried director and you don’t issue yourself a P60 by 31 May, you’re technically in breach of your employer responsibilities, even if you’re the only employee. Plus, the form is often required for mortgage applications, rental agreements, and tax return queries, so it’s well worth keeping on top of. If you miss the deadline, issue the P60 as soon as possible and make a note to get ahead of it next year.