- A P45 is issued when you leave a job and covers your pay and tax from the start of the tax year to your leaving date.
- A P60 is an annual statement given by 31 May to anyone still employed on 5 April, covering the full tax year.
- You hand Parts 2 and 3 of your P45 to a new employer and keep Part 1A, while a P60 stays with you as proof of income.
The difference between a P45 and a P60 comes down to timing: you get a P45 when you leave a job, and a P60 once a year if you’re still employed on 5 April.
Both are PAYE forms that record your pay and the tax you’ve paid, but they serve completely different purposes. Your employer handles both through Sleek’s payroll management service or their own payroll system, so the forms should arrive automatically.
Getting them mixed up can land you on the wrong tax code or leave you short of proof when you apply for a mortgage.
What is a P45 and when do you get one?
A P45 is the form your employer gives you when you leave a job, and it summarises your earnings and tax from the start of the tax year up to your leaving date. By law, your employer must issue one whenever you stop working for them, whether you resign, are made redundant, or your contract ends.
It exists to make sure your next employer taxes you correctly. Without it, you risk being put on an emergency tax code and overpaying.
The form also records your tax code at leaving, your National Insurance number, and your employer’s PAYE reference. If you want to track down that PAYE reference later, our guide on how to find your UTR and tax references explains where these numbers live.
What is a P60 and when do you get one?
A P60 is your end-of-year certificate, issued once a year to anyone still on the payroll as of 5 April. It shows your total earnings and the tax, National Insurance, and student loan deductions taken across the whole tax year.
Your employer must give it to you by 31 May following the end of the tax year. It can be paper or electronic, and if you have more than one job on 5 April, you’ll receive a separate P60 from each employer.
Unlike a P45, you don’t hand a P60 to anyone. You keep it as your official record of income for the year.
What are the differences between a P45 and a P60?
The core difference is that a P45 is a leaver’s document covering part of a year, while a P60 is a year-end document covering the full tax year. The table below breaks down how they compare.
Feature | P45 (leaver document) | P60 (year-end document) |
When it’s issued | Every time you leave a job | Once a year, by 31 May after the tax year ends |
Who gets it | Anyone leaving employment | Anyone on the payroll on 5 April |
Period covered | Start of the tax year to your leaving date | The full tax year (6 April to 5 April) |
Main purpose | Pass to your next employer so you’re taxed correctly | Proof of income for records, self assessment, or a mortgage |
What you do with it | Give Parts 2 and 3 to your new employer, keep Part 1A | Keep it safe for your own records |
What are the four parts of a P45?
A P45 comes in four parts, and knowing where each one goes saves you from tax-code headaches later. Your old employer sends one part directly to HMRC and gives you the other three.
Here’s how the parts are split:
- Part 1 goes from your old employer straight to HMRC. You never handle this part.
- Part 1A is yours to keep for your own records.
- Part 2 goes to your new employer (or Jobcentre Plus if you’re claiming benefits).
- Part 3 also goes to your new employer, who completes it and sends it to HMRC.
If you’ve started a new job, hand over Parts 2 and 3 and hold on to Part 1A. This is the single most common point of confusion, so it’s worth getting right.
Keep a photo or scan of Part 1A before you pass anything on. P45s usually can't be reissued, so a copy protects you if the original goes missing.
What should you do if you don’t have a P45?
If you start a new job without a P45, you fill in HMRC’s starter checklist instead, which lets your employer work out a temporary tax code. This replaced the old P46 form, so the checklist is now the standard route for new starters.
You might not have one because it’s your first job, your previous employer didn’t issue it, or you lost it. HMRC won’t provide a replacement P45, so the starter checklist is your fallback in every case.
If your old employer simply hasn’t sent it, ask them directly, as they’re legally required to provide one. Freelancers and contractors paid through PAYE should also receive these forms, which our guide on P45s for freelancers covers in more detail.
How do you use a P60 for a mortgage or tax return?
A P60 is the document lenders and HMRC accept as proof of your annual income, which is why you keep it rather than pass it on. It shows full-year totals that a P45 simply can’t, because a P45 only covers part of the year.
Common uses include:
- Applying for a mortgage or loan, where lenders want verified annual earnings
- Completing a self assessment tax return, where you transfer the figures across
- Claiming a tax refund if you think you’ve overpaid
- Cross-checking that HMRC’s records match your own
If you’re filing a return, the figures on your P60 feed directly into it. Our walkthrough on how to file a self assessment tax return shows exactly where they go, and you’ll need to be registered for self assessment first.
HMRC recommends keeping your P60s for at least four years in case of any query.
Can you get a replacement P45 or P60?
You can get a replacement P60 from your current employer, but a P45 generally can’t be reissued once it’s been produced. Employers are required to keep payroll records, so a duplicate P60 is usually straightforward to request.
For a lost P45, your options are different:
- Fill in the starter checklist when you join a new employer
- View your pay and tax details through your HMRC personal tax account
- Ask your previous employer for a statement of earnings covering the period
Your payslips and P60 records also act as a useful backup if you ever need to reconstruct your earnings history.
How does the P45 and P60 work together over a tax year?
Across a single tax year, a P45 and P60 hand information from one employer to the next so your tax stays accurate. If you change jobs midway through the year, your old employer issues a P45, and your new employer uses those figures to tax you correctly.
At the year end, your new employer issues a P60 that already includes the earlier P45 figures for the period before you joined. So the two forms aren’t rivals. They’re stages in the same process.
This is why both matter: the P45 keeps your tax code right when you move, and the P60 wraps up the full year for your records.
How Sleek helps with P45s and P60s
Getting PAYE forms right is one of those jobs that’s simple when it works and a real headache when it doesn’t. A missed P45 or a late P60 can leave your employees on the wrong tax code and you fielding awkward questions.
Sleek runs your payroll end to end, issuing P45s the moment someone leaves and getting P60s out well before the 31 May deadline. That means accurate tax codes, happy employees, and one less compliance task on your plate.
Take payroll and PAYE forms off your to-do list
Sleek’s payroll team handles your P45s, P60s, and every PAYE submission so nothing slips through the cracks.
Disclaimer: The preceding information is not legal advice. This content is aimed to provide general guidance. For more formal or legal advice, contact Sleek directly.
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FAQs on P45 vs P60
Is a P45 or P60 more important for a mortgage?
A P60 is the form mortgage lenders prefer, because it shows your total earnings and tax for a full tax year. A P45 only covers part of a year up to your leaving date, so it can’t verify annual income on its own. If you’ve recently changed jobs, lenders may ask for both alongside recent payslips to build a complete picture of your earnings.
Do you get a P45 if you’re sacked or made redundant?
Yes. Your employer must issue a P45 whenever your employment ends, regardless of the reason, including dismissal, redundancy, or resignation. The form records your pay and tax up to your leaving date so your next employer or Jobcentre Plus can tax you correctly. There’s no fixed legal deadline, but employers must provide it within a reasonable time after you leave.
Can you have both a P45 and a P60 in the same tax year?
Yes. If you leave a job partway through the year, you receive a P45 from that employer, then a P60 from whichever employer you’re with on 5 April. The P60 will already fold in your earlier P45 figures, giving a complete year-end total. People with two jobs at once on 5 April can also receive two separate P60s.
What happens if your P45 has the wrong information?
Ask your previous employer to correct the details and issue an amended P45. If they can’t or won’t, tell HMRC through the check your Income Tax online service, and HMRC will contact the employer for the right figures. Acting quickly matters, because incorrect details can leave you on the wrong tax code and paying too much in your new job.
Does a P60 include private pension contributions?
No. A P60 records your earnings, income tax, National Insurance, and student loan deductions for the tax year, but it doesn’t show private pension contributions you make separately. If you need a record of those, keep each payslip or your pension provider statements. This matters when you’re claiming pension tax relief through a self assessment return.
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How long should you keep your P45 and P60?
Keep your P60s for at least four years, as HMRC recommends, since you may need them for tax queries, refunds, or financial applications. Hold on to Part 1A of any P45 too, because it can’t usually be reissued once produced. Storing digital copies is fine and gives you a backup if a paper original is lost or damaged.
Do contractors and freelancers get a P45 or P60?
It depends on how they’re paid. Contractors and freelancers paid through PAYE, including via an agency or umbrella company, receive P45s and P60s like any employee. Self-employed people working outside PAYE don’t get these forms and instead rely on invoices and self assessment records to track income and tax owed.
