
Every worker in the UK is being sent a letter by their employer in the next six weeks - and it's vital that you check it as soon as possible.
Across the UK, every employee of a company who was still in full time employment on Saturday, April 5 must be sent a document before May 31 known as a P60. It's mandatory that your employer sends this to you, and it must be done by May 31.
Your employer can either send it in the post or by email but it must be done before the end of May, and it covers the period from April 6 2024 to April 5 2025. The P60 document will tell you how much money you were paid in salary across the full year, how much was deducted in , how much was put into your , how much was taken for student loan repayments (if this applies to you) and how much you were paid for various paid via your employer such as Statutory Maternity Pay, Statutory Parental Bereavement Pay or Statutory Adoption Pay.
The P60 will have a 'final tax code' on it - and it's this you need to check.
For most people, your code will be 1257L - this is the standard tax code for most basic rate taxpayers earning over £12,570.
But there are several others to watch out for.
If your tax code has 'W1' or 'M1' or 'X' at the end - these are emergency tax codes. For example, 1257LWI, 1257LMI or 1257LX all complicate things usually due to changing jobs or HMRC not being given the correct details.
If your change in circumstances means you have not paid the right amount of tax, you'll stay on the emergency tax code until you've paid the correct tax for the year and you could be owed money - or you could owe HMRC money.
BR means all your income is taxed at the basic rate - usually this is for a second job. But D0 means all of the income is taxed at higher rate. D1 means all your income is at the additional rate (the topmost), and NT means you aren't paying any tax on the income at all.
According to research by Canada Life, , so if you did overpay, you could be owed as much as that back, or more.
HMRC adds: "Your P60 shows the tax you've paid on your salary in the tax year (6 April to 5 April). You get a separate P60 for each of your jobs every tax year.
"If you're working for an employer on 5 April they must give you a P60. They must provide this by 31 May, on paper or electronically. You'll need your P60 to prove how much tax you've paid on your salary, for example, to claim back overpaid tax, to apply for tax credits, or as proof of your income if you apply for a loan or a mortgage.
"You can check how much tax you paid last year if you think you might have paid too much."
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