P45 and P60 Explained — What They Are and When You Need Them

P45 and P60 are two of the most important employment documents in the UK. The P45 is issued when you leave a job. The P60 is issued annually to all current employees. Both show your earnings and tax paid, and both are essential for avoiding overtaxation and keeping records.

What Is a P45?

A P45 is issued by your employer when you leave. It contains:

• Your full name and National Insurance number
• Your PAYE reference and tax code at time of leaving
• Date of leaving
• Total gross pay in the current tax year to that date
• Total income tax paid in the current tax year to that date
• Student loan deduction indicator (if applicable)

Part 1 is sent to HMRC by your employer. Parts 2 and 3 are given to you — take Parts 2 and 3 to your new employer on your first day. They use this to issue the correct tax code and avoid putting you on emergency tax.

If you have multiple jobs and leave one, you'll get a P45 for that employment — but your primary employer will still calculate tax cumulatively.

What Is a P60?

A P60 is an annual summary issued to all employees still in post on 5 April (the last day of the tax year). It covers the full tax year from 6 April to 5 April and shows:

• Total gross earnings for the year from that employer
• Total income tax deducted
• Total National Insurance contributions (employee and employer)
• Tax code at year end
• Student loan deductions (if applicable)
• Statutory payments (SMP, SSP, etc.)

Your employer must provide your P60 by 31 May after the tax year ends (so by 31 May 2025 for the 2024/25 tax year).

P45 vs P60 — Key Differences

What to Do If You Lose Your P45 or P60

Lost your P45? Your old employer is not legally obliged to replace it. Instead, ask your new employer for a starter checklist (formerly P46) — completing this gives HMRC enough information to issue a correct tax code without the P45. You will not be penalised, but expect a temporary emergency code until HMRC processes your details.

Lost your P60? Contact your current employer — they should be able to provide a duplicate or a statement of earnings confirming the same figures. You can also view your employment income and tax paid via the HMRC personal tax account at gov.uk/personal-tax-account.

When to Use Your P45 or P60

• New job: Provide P45 Parts 2 & 3 to avoid emergency tax
• Self Assessment tax return: Both documents help verify employment income
• Mortgage application: Lenders often require 2–3 years of P60s
• Tax refund claim: P60 shows total tax paid; P45 shows tax paid when leaving a job mid-year
• Benefits applications: Proof of income for UC, tax credits
• Pension transfers: May be required as income verification