Your employer is required to provide you with a crucial tax document, the P60, by May 31. Failure to do so can result in a fine of £300 initially, followed by additional daily penalties. The P60 details your total pay and deductions for the tax year that ended on April 5.
If you were on your company’s payroll at the end of the tax year, you should receive a P60. Individuals with multiple jobs will receive a P60 from each employer. Mortgage lenders and banks often request the P60 to confirm your salary and employment status, making it essential to verify if the correct amount of tax has been paid.
Your P60 contains your tax code, indicating the amount to be deducted from your wages or pension. Common codes include 1257L for individuals with one job or pension. However, discrepancies in the tax code can occur due to job changes or incorrect information provided to HMRC by your employer.
To check if your tax code is accurate, MoneySavingExpert.com offers a free calculator. If you believe you have overpaid tax, you can claim a refund from HMRC for up to four previous years. In certain cases, you may still be eligible for a refund beyond this period, especially if the overpayment was not your fault.
HMRC will issue a refund by check for overpaid tax from previous years. If you discover that you have underpaid tax due to an incorrect code, you will be required to repay the outstanding amount. Exceptions may apply if the underpayment was not your fault.
Upon leaving a job in the previous tax year, you should have received a P45 summarizing your tax details. Stay updated with the latest news by selecting Daily Mirror as a ‘Preferred Source’ on Google News.
