Difference between P60 and P45
Updated on August 08, 2025
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What is the difference between P45 and P60?
A P45 is issued to employees when they leave a job, while a P60 is given at the end of the tax year if they are still working. Both show records of the employee’s income and taxes paid, but for different time periods.
If you have worked in the UK, chances are you’ve come across two tax forms: the P45 and the P60. They might look similar, but they serve very different purposes, and if you’re a US expat, knowing the difference can save you a lot of tax headaches.
In this guide, we’ll break down what each form is for, when you’ll get them, and how they affect your UK and US tax filings.
What is a P45?
A P45 is a document you receive from your employer when you leave your job.
It shows how much you have earned and how much tax you’ve paid in that job up to the date you leave. You’ll usually give it to your next employer so they can deduct the right amount of tax going forward.
What details are on a P45?
- Your full name and National Insurance number
- PAYE reference
- Total earnings to date in the tax year
- Total income tax paid to date
- Your tax code
What Is a P60?
A P60 is issued to employees who are still working for their employer at the end of the tax year (April 5). So, you receive this form every year. A P60 summarizes your total earnings and tax paid for the entire tax year.
What details are on a P60?
- Your name, National Insurance number, and tax code
- Employer details
- Total income and tax paid for the year
- Any National Insurance contributions
- Student loan deductions, if applicable
📌 Tip: Most employers send these forms electronically, but you’re also entitled to a printed copy which may be needed for visas, mortgages, or tax returns.
P45 or P60 — know which form applies to your tax situation.
P45 vs P60: Quick comparison table
To summarize, here is a quick comparison of P45 and P60:
|
Category |
P45 |
P60 |
|
Purpose |
Issued when an employee leaves a job |
Issued at the end of the tax year for ongoing employment |
|
Issued by |
Former employer |
Current employer |
|
When issued |
On or shortly after the date of employment termination |
By May 31, after the tax year ends (April 5) |
|
Tax period coverage |
From the start of employment to the date of leaving |
Full UK tax year (April 6 – April 5 the following year) |
|
Information included |
|
|
|
Used for |
|
|
|
Required by HMRC? |
Yes |
Yes |
|
Importance |
Ensures accurate tax calculations during job changes |
Confirms full-year income and deductions for compliance |
What happens if I have more than one job?
If you’ve had multiple jobs in the UK, each employer will provide its own P45 (when you leave) or a P60 (if you’re still employed at tax year-end). You could end up with several of these forms in a single year.
For example:
If you left one job in March and started a new one in April, your old employer would give you a P45 when you left. If you’re still working at your new job at the end of the tax year, you’d also get a P60 from your new employer by May 31. In this case, you would receive both forms during the same tax year.
Why do I need to keep track of multiple P45s and P60s?
Managing these forms correctly is important for:
- Accurate tax calculations
- Filing self-assessments (if required)
- Avoiding tax overpayments or underpayments
📌 Note: Each form only shows part of your total income if you have multiple P45s or P60s in a tax year. If you changed jobs mid-year, combining these forms manually is key for accurate self-assessment or US tax filing.
How can I organize multiple P45 and P60 forms?
- Keep all P45s and P60s from each employer
- Add up income and tax paid across all jobs to get a full picture
- Label and store each form by employer and tax year
- Double-check that your total income is correctly reported when filing taxes or communicating with HMRC
When do I need to show my P45 or P60 outside of taxes?
Besides tax filing, P45 and P60 forms are commonly needed in several everyday situations. Here are examples of when to use a P45 vs a P60:
- Applying for a mortgage or loan: A P60 is often required as proof of income when applying for mortgages, loans, or credit cards.
- Visa or residency applications: Immigration authorities may request your P60 to verify your earnings and work history.
- Self-assessment tax returns: If you’re required to file a self-assessment, both forms help ensure your income and tax payments are correctly reported.
- Claiming a tax refund: Use your P45 or P60 when applying for refunds through HMRC or the IRS (if you’re a US expat).
Do US expats in the UK need to keep P60 and P45 forms?
Yes, it’s actually beneficial for US expats to have these forms. If you’re filing a US tax return while working in the UK, the P45 and P60 forms help you report accurate foreign income and taxes paid, which is important for claiming tax credits like the Foreign Tax Credit (FTC) or Foreign Earned Income Exclusion (FEIE).
They serve as proof of foreign tax paid, which can help reduce or eliminate your US tax bill.
📌 Bottom line: Even though they’re UK forms, P45 and P60 are essential for staying compliant with the IRS while living abroad.
FAQ'S
-
Will HMRC automatically know about all my jobs?
Not always. It’s your responsibility to make sure your tax records reflect all your sources of income. Having complete and organized P45 and P60 forms makes this easier and helps avoid issues like emergency tax codes or underreporting.
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How do I get a P60?
-
How do I get a P45?
-
Can I receive both a P45 and a P60 in the same tax year?
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