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    If you were employed on April 5, your employer is obliged to supply you with Form P.60 by the following May 31. This very important certificate gives details of your employment, as well as disclosing your gross pay and tax deductions made during the fiscal year just ended. You should receive a P.60 from every employed position you held at the end of the fiscal year.

The information given on the P.60 is designed to be copied straight into the employment section of the employee's personal tax return. There are no calculations. It is just plain transcription.

The P.60 form should disclose the following information:
  • The employer's full name and address.

  • The employer's tax reference.

  • Your personal details (name, address, NI number, DoB).

  • Your gross pay, and PAYE deductions in previous employments that tax year.

  • Your gross pay, and PAYE deductions made by the employer providing the P.60.

  • Details of your National Insurance tax deductions for the tax year.

  • The date employment commenced, if it occurred during the current tax year.

  • The date of leaving, if it occurred during the current tax year.

    • P11D Disclosures

    If your gross salary exceeded £8,500 for any one engagement during the fiscal year, then that employer is obliged to make a Form P11D return to the Inland Revenue in connection with your employment.

    The P11D discloses the amounts of any reimbursed expenditure you have been repaid, and/or the benefits in kind you may have accrued that year.

    Most employees understand that if they enjoy a benefit-in-kind (company car, private fuel, preferential loans, etc) then they will suffer a tax charge on the cash equivalent of that 'perk'. The Inland Revenue is informed of the taxable benefits through the P11D prepared by the employer each year.

    The P11D may also disclose whether the employer has reimbursed the employee for any expenses that have been incurred in the course of business.

    If the employer informs you that a 'null' P11D has been made on your behalf, then you can forget all about the implications of P11D for another year.

    On the other hand, if your P11D discloses that you have received expenses, you must make sure you complete a personal tax return yourself. If you don't, as crazy as it may sound, you will find that you will be taxed on the money made good to you.

    For example. Let us say that you traveled to Scotland to attend a meeting on behalf of your employer. You paid £500 for the travel and overnight expenses from your own private funds, and later claimed it back on expenses. A normal, and quite reasonable chain of events.

    Unless your employer has a been granted a special dispensation by the Inland Revenue, they are required to disclose the repayment of £500 expenses, as 'taxable income' assessble on you. In other words, if you are a higher rate tax payer, it will cost you £200 in tax (£500 x 40%) for the privilege of paying your own employer's costs, from your own private funds.

    To avoid paying tax, you will need to make a claim for £500 travel and subsistence expenses in the employment section of your own personal tax return. The expense of £500 will cancel out the reported £500 taxable income disclosed by your employer.

    It may seem a long-winded process, but it is the way the current tax system works. You may care to talk to us abut ways of avoiding this time wasting exercise, including applying for a dispensation if you are also the employer.

    P9D Disclosures

    If your gross salary was less than £8,500 during the fiscal year, then your employer may still be required to make a Form P9D return to the Inland Revenue, if they reimbursed you for any expenses in connection with your employment. Just as in the case of P11D expenditure above, you will need to reclaim the P9D expenditure in your personal tax return if you are to avoid a charge to tax.