Tax Rebates & Refunds

The importance of the P60 and P45 forms for tax rebates

February 15, 2011
Posted in Income Tax — Written by Chris

Filing for tax returns without P45 and P60 forms is much more difficult. These tax forms help in declaring the amount earned in a financial year. It should be noted that your employers are legally obligated to provide these forms. Under no circumstances should you discard these forms.

The difference between a P45 and a P60

A P45 is quite similar to the P60. However it has 2 notable differences. These differences are mentioned below.

  • The P45 is given to the employee when leaving the place of employment. This form contains accurate earnings and deductions up to the date when the contract was terminated.
  • The P45 has four different parts. This includes one section that is given to the tax authorities by your employer, parts two and three given to you by the new employer and the last part to be kept by you for your records.

These are a couple of the factors that separate a P45 from a P60.

It should be noted that you cannot duplicate a P45. If you misplace or discard your P45, it is important to inform your employer about the same. You will then be issued with a P46. Forward the P46 with your details to the HMRC in order to get a new tax code and reference.

The P60 consists of all the information pertaining to the amount earned, deductions, extra income in case of maternity/paternity leave and national insurance contribution. It is extremely important to keep the P60 safe as the HMRC will need it to provide tax rebates.

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