Income tax for employees
By Joe Elvin
Article 4 of 9
Get to grips with the various tax forms you may come across when sorting out your financial affairs.
If you work for a company, your employer plays a vital role in your tax affairs. Not only do they collect tax from your pay and send it onto HMRC, they also issue important documents to you that you need to keep safe to stay on top of your affairs.
The information these documents contain is important if you want to query your tax code, claim a tax refund or are required to complete a tax return.
Here, we explain what tax forms you 're most likely to come across when you're employed, and when you'll need to fill them out.
- Get a head start on your 2016-17 tax return with the Which? tax calculator. Tot up your tax bill, get tips on where to save and submit your return direct to HMRC with Which?.
P9D and P11D
Form P9D and Form P11D both show the amount of taxable benefits - such as private health insurance - and reimbursed expenses you have received from your employer over the tax year (April 6 to April 5).
It is sent by your employer to HMRC if you get any benefits that are not included in your wages.
- Form P9D is used if you earned less than £8,500 in a tax year
- Form P11D is used if you earned more than this
The 2014/15 Form P11D details the value of benefits in the following 14 categories
- Assets transferred
- Payments made on behalf of the employee
- Credit cards and vouchers
- Living accommodation
- Mileage allowance
- Cars and car fuel
- Company vans
- Beneficial loans
- Medical health
- Qualifying relocation payments
- Services supplied
- Assets placed at employee’s disposal
- Other items
- Expenses payments
If you need to fill out a tax return, you should use the amounts given on this form to report which benefits you need to pay tax on. You should be issued with this by 6 July.
Form P60 is a summary of your pay and tax deductions for the previous tax year (April 6 to April 5).
Your employer should give it to you every year by 31 May.
This is the definitive statement of your earnings and how much tax you paid for that tax year.
You may need it to:
- claim back overpaid tax
- apply for tax credits
- provide proof of earnings to a lender.
If you are unemployed you will be issued with a P60U form by Jobcentre Plus at the end of the tax year.
This shows your taxable state benefits and tax deducted, which you may need to report on page TR3 of the main tax return.
If you leave your job during the tax year your employer will issue you a P45, rather than a P60.
It shows how much taxable pay you received from your employer in that year and how much tax you have paid.
You should give this to your new employer or Jobcentre Plus so they can start deducting the correct amount of income tax from your pay or benefits straight away.
If you do not have a P45 to give to a new employer when you start work (for example, because this is your first job, you're starting a second job, you've lost it or you have not been working or claiming benefits recently), your employer will instead ask you to complete a starter checklist so that the correct tax can be deducted from your pay.
The P46 was replaced with the starter checklist on 6 April 2014. If you left your last job before this date, you will still need to fill out a starter checklist, regardless of whether you have a P45.
- Last updated: April 2017
- Updated by: Gareth Shaw