P60 Explained: The P60 shows all the details of our income and expenses, as well as how much tax we have paid and how much we owe. The P60 is a very important document for us. It is a way of showing you how much we have earned and how much tax we have paid on that income.
In addition, it shows how much tax we still owe. It’s important for you to understand what it shows. You need to know what it means when the amount of tax we owe changes.
The P60 is the same whether we are using the Income Tax system or the VAT system. However, there are different types of P60s depending on which type of income you have. We show three types of P60s below.
Types of P60s
P60s showing income from employment
P60s showing self-employment income
These are used when you earn money in your own account. You’ll usually find these forms inside your tax return, in the Summary section.
P60s showing interest income
These are used when you receive interest payments. Interest is money you get in return for lending someone money.
P60 Example: The Social Security Administration will notify your employer when you have worked for SSA. You will have a number of weeks (usually six) to get a copy of your earnings record from your employer and send it to the agency. This earnings record shows what you earned from work and is called a Form W- 2.
The Social Security Administration needs this earnings record for the FICA and Medicare taxes. The amount of FICA and Medicare taxes withheld from your paycheck can be different from what you actually owe.
Does P60 show a tax refund?
If you have received a P60 tax refund, you should file the form immediately and ask for an explanation of the refund. A P60 tax refund may be used for any purpose you want. For example, you could use the money to pay for your rent, mortgage or electricity bills. Some people use their P60 tax refunds to buy new clothes or spend them on holidays.
If you are using a P60 form to pay for a bill, you must provide evidence that the bill is being paid. For example, you could use a bank statement showing that you have made a payment. Alternatively, you could provide a letter from the company or service provider that the money has been taken from your account.
If you have used your P60 to pay for a car, you will need to provide evidence that the car is insured. For example, you could use a car insurance document showing that you have purchased insurance for your car. Or you could use the insurance document to show that you have purchased a policy. If you are paying for your car using a P60 form, you will need to provide evidence that the car has been insured.
P60 tax refund example
P60 Example 1: If you have paid the tax on your income by using your pay slip and you received a tax refund check, you must report the amount on your tax return. The IRS will not allow you to get a refund and then not report it on your return.
Example 2: If you were paid and did not file a W- 4 with your employer, you will have to file Form W- 4 with the IRS and provide a copy of it to your employer.
Example 3: If you have income and expenses, you can deduct some or all of the expenses on your tax return.
Example 4: If you have income and expenses, you can deduct some or all of the expenses on your tax return.