P45 vs P60: The Difference and When You Need Each
P45 vs P60: What's the difference? Learn what each tax form means, when you'll receive them, and why both matter for employment and tax refunds.
If you have ever changed jobs or received a year-end payslip, you have probably come across the terms P45 and P60. Both are official HMRC documents issued by your employer, but they serve very different purposes. One is given when you leave a job. The other arrives at the end of the tax year.
Understanding the difference between these two forms is important. It helps you handle your tax correctly, avoid overpaying, and keep your employment records accurate. Using the wrong form at the wrong time can lead to emergency tax, incorrect records, or delays with refunds.
This guide explains what each form is, when you receive it, how to use it, and what to do if you lose one.
For a broader understanding of PAYE documents, our understanding your PAYE payslip guide explains what each line on your payslip means. If you are looking for a detailed breakdown of tax codes, our 1257L tax code guide covers the most common code.
A P45 is issued when you leave a job and shows your income and tax paid to date. A P60 is issued at the end of the tax year if you are still employed and summarises your annual pay and tax deductions.
What Is a P45
A P45 is a tax form you receive when your employment comes to an end. It is a summary of your earnings and the tax you have paid up to your leaving date. It also includes your tax code, National Insurance number, and your employer's PAYE reference.
You will get a P45 every time you leave a job, no matter what time of year it is. Whether you leave in January or August, your employer must give you a P45.
What a P45 Contains
A P45 is made up of four parts, each with a different purpose. In practice, modern employers often submit the relevant information electronically, so you may not always see physical copies of Parts 2 and 3.
| Part | Sent To | Purpose |
|---|---|---|
| Part 1 | HMRC | Sent electronically by employer |
| Part 1A | You (employee) | For your records |
| Part 2 | Your new employer | Ensures the correct tax code continues |
| Part 3 | Also to new employer | Confirms PAYE setup for new job |
For more on tax codes, our complete list of UK tax codes explains every code you might see on your P45.
A P45 has four parts: one for HMRC, one for your records, and two for your new employer. Modern employers often submit information electronically, so you may not see all parts physically.
What Is a P60
A P60 is your end-of-year tax summary. It summarises your annual pay and tax deductions and may include other payroll information depending on the employer's format. The tax year runs from 6 April to 5 April.
You only receive a P60 if you are still employed by the same employer on 5 April. If you leave before the end of the tax year, you will not get a P60 from that employer. Instead, you will have a P45.
What a P60 Includes
- Total pay for the tax year
- Total Income Tax deducted
- National Insurance contributions (where applicable)
- Final tax code used during the year
- Employer and employee details
- Statutory payments such as maternity or sick pay, if applicable
Your employer must give you your P60 by 31 May after the end of the tax year.
For more on P60s, our what is a P60 form guide explains its importance in detail.
A P60 summarises your annual pay and tax deductions. You receive it by 31 May if you are still employed on 5 April.
P45 vs P60: The Key Differences
The table below summarises the main differences between a P45 and a P60.
| Feature | P45 | P60 |
|---|---|---|
| When Issued | When you leave a job | At the end of the tax year (5 April) |
| Purpose | Shows tax and income up to your leaving date | Summarises tax and income for the full tax year |
| Who Issues It | Your employer when you leave | Your employer if you are still employed on 5 April |
| Who Receives It | You, HMRC, and your next employer | You only |
| Used For | Starting a new job, claiming benefits, or refunds | Tax returns, financial applications, or income verification |
| Replacement | Employer (no duplicates if lost) | May be able to provide a replacement copy or statement |
In short: you get a P45 when you leave a job, and you get a P60 at the tax year-end if you are still employed.
P45 is issued when you leave a job. P60 is issued at the end of the tax year if you are still employed. They serve different purposes and are used for different situations.
Why These Forms Are Important
Both forms play an important role in managing your tax affairs. They are used to verify your income, claim refunds, and apply for financial services such as mortgages or loans.
Without a P45, your new employer may initially use an emergency tax code or starter information until HMRC records are updated. This often results in paying too much tax initially. Without a P60, you may struggle to prove your income for a mortgage application, loan, or benefit claim.
If your tax code is incorrect, our how to check and correct your HMRC tax code guide explains the steps to fix it.
P45 and P60 are essential for accurate tax records, starting new jobs, claiming refunds, and applying for mortgages or loans.
Example: When You Will Use Each Form
Scenario 1 – Changing Jobs Mid-Year
Tom leaves his job in October and starts a new one in November. His old employer gives him a P45. He gives this to his new employer. This ensures his new employer applies the correct tax code rather than an emergency code.
Tom will still get a P60 from his new employer at the end of the tax year, but not from his old one.
Scenario 2 – Staying in the Same Job All Year
Maria works for the same employer throughout the year. She does not receive a P45 because she has not left. She does receive a P60 by 31 May, which confirms her annual pay and deductions.
For more on PAYE tax codes, our UK tax codes guide explains how to check and change your tax code.
If you change jobs, you use your P45 to ensure correct tax deductions at your new job. If you stay in the same job, you only receive a P60 at the end of the tax year.
What to Do If You Lose a P45 or P60
If You Lose Your P45
Employers are not legally required to reissue a P45. If you lose it, your new employer can use HMRC's online records to set up your tax code. You can also check your tax details through your HMRC Personal Tax Account.
If You Lose Your P60
Your employer may be able to provide a replacement copy or statement containing the same information. If your employer no longer exists, HMRC can provide a Statement of Earnings.
For more on record keeping, our how long to keep tax records guide explains the requirements.
A lost P45 cannot be reissued, but your new employer can use HMRC records. A lost P60 may be replaced by your employer or with a Statement of Earnings from HMRC.
Final Thoughts
Understanding the difference between a P45 and a P60 is essential for managing your tax affairs correctly. A P45 is issued when you leave a job and shows your income and tax paid to date. A P60 is issued at the end of the tax year if you are still employed and summarises your annual pay and tax deductions.
Both forms are vital for accurate tax records, starting new jobs, claiming refunds, and applying for mortgages or loans. Keep them safe and check them for accuracy.
If you lose a P45, your new employer can use HMRC records. If you lose a P60, your employer may be able to provide a replacement copy or statement. Always check both forms for correct tax codes and totals.
All information in this guide is based on official HMRC and GOV.UK sources. Readers should verify their tax records through their HMRC Personal Tax Account, as individual circumstances vary and rules may change after publication.
Written by
Daniel Reed
Daniel Reed writes about PAYE, payslips, tax codes, workplace deductions and take-home pay in the UK.
See more from Daniel Reed