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A P45 and P60 are both UK tax documents, but they are used at different points in your employment. A P45 is given when you leave a job. It shows your pay, tax paid, tax code and leaving date for that tax year so your next employer or HMRC can tax you correctly. A P60 is given after the end of the tax year if you are still employed on 5 April. It summarises your total pay and tax for the full tax year.
The simplest way to remember it is this: P45 means you have left. P60 means you stayed until the end of the tax year. Both matter because they affect tax, payroll, proof of income, benefits, mortgages, job changes and sometimes tax refunds.
A P45 is an employment leaving document. You receive it when you stop working for an employer. It tells HMRC and your next employer how much you earned and how much tax you paid in the current tax year before leaving.
A P60 is an annual tax summary. You receive it from your employer after the tax year ends if you were still employed by them on 5 April. It shows your total taxable pay and deductions for the full tax year.
Here is the practical difference:
| Document | When you get it | What it shows | Why it matters |
| -------- | ------------------------------------------------------- | ----------------------------------------------------------------- | ------------------------------------------------------------------------ |
| P45 | When you leave a job | Pay, tax paid, tax code and leaving date for the current tax year | Helps your next employer apply the right tax code |
| P60 | After the tax year ends, if you are employed on 5 April | Total pay and tax deducted for the tax year | Used for proof of income, tax checks, refunds and financial applications |
In real life, candidates usually care about these forms for one of three reasons: they are changing jobs, checking whether they have paid the right tax, or trying to prove income for something official. That is where confusion starts, because payroll language makes simple things sound unnecessarily mysterious. Very on brand for employment admin, unfortunately.
A P45 is the form your employer gives you when you leave a job in the UK. It confirms the details payroll needs to close your employment record and pass your tax information on correctly.
Your P45 usually includes:
Your leaving date
Your total pay in the current tax year
The tax you have paid so far in that tax year
Your tax code
Your National Insurance number
Your employer’s details
Your personal details
From a recruiter and hiring perspective, the P45 is not usually something I care about during selection. I am not looking at a candidate’s P45 to decide whether they are good enough for a role. That is not how recruitment works.
But once someone is hired, payroll may need the P45 so the new employer can set them up correctly. Without it, the employer may need to use a starter checklist, and HMRC may need to work out the correct tax position from the information available.
This is where candidates often panic and assume not having a P45 means they cannot start a new job. Usually, that is not true. It may create payroll admin, but it should not stop a genuine job offer.
A P60 is your annual tax summary from your employer. It covers the UK tax year, which runs from 6 April to 5 April.
You get a P60 if you are employed by an employer on 5 April, the last day of the tax year. Employers must provide it by 31 May.
Your P60 usually shows:
Your total pay for the tax year
Income tax deducted
National Insurance contributions
Your tax code
Employer details
Employee details
Payroll reference information
A P60 is often useful when you need to prove what you earned and how much tax you paid. This can matter for mortgage applications, rental checks, student finance, tax refunds, visa related financial evidence, self assessment records, benefit claims and general income verification.
From what I see, people often underestimate the P60 because it arrives quietly and looks like another boring payroll document. Then six months later, a lender, accountant, landlord or government department asks for it and suddenly everyone is searching their inbox like it contains state secrets.
The easiest rule is:
A P45 is for leaving a job. A P60 is for finishing the tax year in a job.
That is the distinction that matters most.
You get a P45 when employment ends. You get a P60 when the tax year ends and you are still employed.
You do not normally get both from the same employer for the same job at the same time. If you leave before 5 April, you should receive a P45 from that employer. If you are still working for them on 5 April, you should receive a P60 after the tax year ends.
This is where many people get confused. They ask, “Should I have a P60 from my old employer?” The answer depends on whether you were still employed by them on 5 April.
If you left before 5 April, you should usually expect a P45, not a P60. If you were still employed on 5 April, you should expect a P60.
A new employer may ask for your P45 because it helps payroll apply the correct tax information when you start.
The P45 tells the new employer what has already happened in the tax year. Without it, payroll may not know how much taxable pay you have already received or which tax code should apply.
That matters because UK PAYE tax works across the tax year, not just from the day you start a new job. Your new employer needs enough information to avoid taxing you incorrectly.
What employers often say is: “Please send your P45.”
What they usually mean is: “Payroll needs your previous tax information so we do not make a mess of your tax code.”
This is not usually a hiring decision. It is an onboarding and payroll process.
As a recruiter, I would not expect a candidate to be rejected because they do not yet have a P45. What I would expect is payroll asking for either the P45 or a starter checklist. If the employer treats a missing P45 like a moral failing, that tells me more about their admin culture than about the candidate.
If you do not have a P45, your new employer can usually ask you to complete a starter checklist. This gives payroll information about your previous work situation so they can set you up with HMRC.
You may not have a P45 because:
You have not received it from your previous employer yet
You lost it
You are starting your first job
You were previously self employed
You are moving from overseas into UK employment
Your previous employer made an admin error
You are starting a second job
The practical risk is not that you cannot work. The practical risk is that you may be placed on an emergency tax code or an incorrect tax code until HMRC and payroll have the right information.
That can mean you temporarily pay too much tax or sometimes too little. If you have overpaid, you may get it back later, but “later” is not very comforting when rent, bills and life are happening now.
My advice is simple: do not ignore it. Ask your previous employer for the P45, complete the starter checklist if needed, and check your first payslip carefully.
If you were employed on 5 April, your employer should provide your P60 by 31 May. If you have not received it, ask payroll or HR.
Many P60s are now electronic, so check:
Your work email
Your personal email if payroll uses it
Your employee portal
Your payroll system
Your HR platform
Your payslip platform
If you left the employer before 5 April, you may not get a P60 from them for that tax year. You should have received a P45 instead.
This is one of the most common misunderstandings. People leave a job in February, then wonder why there is no P60 from that employer in May. If you were not employed by them on 5 April, the P60 is usually not the document you should be expecting.
If you need proof of income for that period, your P45 and payslips may be more relevant.
Your P45 and P60 both help you understand whether your tax looks broadly correct, but they play different roles.
A P45 helps transfer your tax position when you leave one job and start another. A P60 shows the final position for the full tax year with that employer.
The tax code is the detail candidates often overlook. That is usually where problems hide.
A tax code tells payroll how much tax free income you are allowed before tax is deducted. If your tax code is wrong, your pay can be wrong.
Common situations that can affect your tax code include:
Changing jobs during the tax year
Starting a second job
Receiving benefits in kind
Having company car benefits
Moving from self employment into PAYE employment
Returning to work after a break
Having more than one income source
Not giving your new employer the right starter information
This is the boring admin that can quietly cost people money.
From a hiring process point of view, candidates often obsess over whether sending a P45 looks bad. It does not. What actually matters is whether payroll can process your employment correctly. Employers are not judging your career history from a P45. They are trying to get PAYE right.
You may need a P45 or P60 in several practical situations.
A P45 may be needed when:
You start a new job
You claim certain benefits after leaving work
You want to check tax paid after leaving employment
You need evidence of pay and tax for part of a tax year
You are sorting out a tax refund after leaving a job
A P60 may be needed when:
You apply for a mortgage
You apply to rent a property
You complete a self assessment tax return
You claim a tax refund
You need proof of income
You check whether you paid the right tax
You apply for financial products
You need records for visa or immigration related financial evidence
One thing I always tell candidates is this: keep your payroll documents even when you think you will never need them. The documents people delete casually are often the documents they desperately need later.
A P60 is especially useful because it gives a clean year end picture. Lenders and official bodies like clean evidence. They do not want a dramatic explanation about your payroll system login expiring after you left. They want the document.
When you change jobs in the UK, your P45 is usually the document your new employer wants.
Here is what normally happens:
You leave your old job
Your old employer processes your final pay
They issue your P45
You give the relevant P45 details to your new employer
Your new employer uses the information for payroll
Your first payslip should reflect the tax position as accurately as possible
In practice, timing can be messy. You may start the new job before the old employer has issued the P45. Final pay may include holiday pay, deductions, bonuses or corrections. Payroll cut off dates may not align neatly. None of this is unusual.
What matters is communication.
Tell your new employer if your P45 is not available yet. Complete the starter checklist if asked. Then check your payslip once you are paid.
A good employer will treat this as routine payroll admin. A disorganised one may make it feel like you personally broke the tax system. You did not. Payroll transitions are often clunky because real life refuses to fit neatly into forms.
When you receive your P45, do not just file it away without looking at it. Check the basics.
Look at:
Your name
Your National Insurance number
Your leaving date
Your tax code
Your total pay to date
Your tax paid to date
Your employer details
The leaving date matters more than people realise. If it is wrong, it can create confusion around employment dates, payroll records and benefits.
The pay and tax figures also matter. If your final salary included holiday pay, commission, bonus payments or deductions, check that the numbers broadly make sense against your final payslip.
You do not need to become a payroll expert, but you do need to spot obvious errors. The earlier you question them, the easier they are to fix.
Your P60 is worth checking because it summarises the tax year.
Look at:
Your full name
Your National Insurance number
Your employer details
Your taxable pay
Tax deducted
National Insurance contributions
Your final tax code for the year
If something looks wrong, compare it against your final payslip for the tax year. Your March or April payslip can help you spot whether the P60 matches payroll records.
The biggest red flag is often the tax code. If you have had multiple jobs, changed roles, received taxable benefits or had a period of emergency tax, look more closely.
I have seen candidates ignore payroll errors because they assume HMRC or the employer will automatically catch everything. Sometimes they do. Sometimes they do not. The adult answer, annoying as it is, is to check.
The biggest mistake is treating P45s and P60s as documents that only payroll people need to understand. You do not need deep technical knowledge, but you do need enough awareness to protect yourself from avoidable tax problems.
Common mistakes include:
Assuming a P45 and P60 are the same thing
Expecting a P60 from an employer you left before 5 April
Not giving your P45 to your new employer
Ignoring an emergency tax code
Not checking your first payslip after changing jobs
Losing your P60 before applying for a mortgage or rental property
Forgetting that each job can produce separate tax records
Assuming payroll is always correct
Waiting months before questioning incorrect pay or tax
The mistake I see most often is emotional rather than technical. People feel embarrassed asking payroll questions, so they stay quiet. Do not do that. Payroll errors are not character flaws. They are admin problems. Ask clearly, keep records, and follow up.
Example: You leave a job in September and start a new job in October
You should receive a P45 from your old employer. Your new employer may ask for it so they can set up your tax correctly. At the end of the tax year, if you are still employed by your new employer on 5 April, your new employer should issue your P60.
Example: You stay in the same job all year
You will not receive a P45 because you have not left. You should receive a P60 after the tax year ends.
Example: You leave a job in February
Your old employer should issue a P45. If you are not employed by them on 5 April, you should not normally expect a P60 from that employer.
Example: You have two jobs
You may receive separate tax documents from each employer depending on your employment dates. Tax codes can become more complicated when you have more than one job, so check your payslips and HMRC records carefully.
Example: You start your first UK job
You will not have a previous P45 if you have not worked in UK PAYE employment before. Your employer should ask you for starter information instead.
Let me be very clear: a P45 or P60 is not usually part of the recruitment decision.
A hiring manager is not sitting there comparing candidates based on their P60s. A recruiter is not shortlisting people because their P45 looks neat. These documents belong to payroll, compliance and proof of income, not candidate evaluation.
Where they can become relevant is after offer stage, during onboarding or employment checks. Even then, the point is usually administrative.
What can cause problems is not the document itself, but inconsistency.
For example, if your stated employment dates are very different from payroll records, that may raise questions. If you say you are currently employed but your documentation suggests otherwise, someone may ask for clarification. That is not because the P45 is judging you. It is because employers care about consistency during checks.
My advice is to be accurate with employment dates on your CV and applications. Do not inflate dates to hide a short gap. Most gaps are easier to explain than inconsistencies.
Employer language can be vague, so let us decode it.
When an employer says, “We need your P45,” they usually mean payroll needs your tax information.
When they say, “Do you have your P60?” they may need proof of income or tax paid for a full tax year.
When they say, “We need evidence of previous earnings,” they may accept payslips, a P60, tax records or other formal documents depending on the purpose.
When they say, “This is required for onboarding,” they normally mean it is part of the admin process after an offer, not a factor in whether you are good enough for the job.
The problem is that employers often explain this badly. Candidates then worry unnecessarily because the request sounds more serious than it is.
A reasonable response is simple and professional:
Good Example:
“I do not have my P45 yet as my previous employer has not issued it, but I can complete the starter checklist and send the P45 once I receive it.”
That is clear, calm and practical.
Weak Example:
“I do not know where it is and I have never needed one before.”
That may be true, but it does not help payroll move forward.
Keep your P45s and P60s for several years, especially if you complete self assessment, apply for financial products, claim refunds or need proof of income.
You do not need a dramatic filing system. A secure digital folder is enough for most people.
Keep copies of:
P45s
P60s
Payslips
Employment contracts
Bonus letters
Tax code notices
HMRC correspondence
This is one of those boring habits that saves future stress. Nobody wants to become a payroll archaeologist the week before a mortgage deadline.
If your P45 or P60 looks wrong, start with your employer or former employer’s payroll team. Be specific.
Say what appears wrong and attach supporting documents if needed.
For example:
Good Example:
“My P45 shows a leaving date of 28 June, but my final working day and final payslip show 30 June. Could you please check and confirm whether this can be corrected?”
Or:
Good Example:
“My P60 taxable pay does not appear to match my final payslip for the tax year. Could payroll please review the figures and confirm whether the P60 is correct?”
Do not send vague messages like “My tax looks wrong.” Payroll teams need specifics.
If the issue relates to your tax code or overall tax position, you may also need to contact HMRC. Employers operate payroll based on the information and codes available to them, but HMRC controls tax codes.
For UK job seekers, the main thing to understand is that P45s and P60s are not career documents. They are tax and payroll documents.
A P45 helps with the transition between jobs. A P60 gives a yearly summary.
They matter because incorrect or missing information can affect your pay, tax code, refunds, proof of income and onboarding admin. But they should not be treated as mysterious documents that decide your professional worth.
The practical approach is:
Keep every P45 and P60 safely
Give your P45 to your new employer when asked
Use a starter checklist if you do not have one
Check your tax code after changing jobs
Review your P60 each year
Question errors early
Keep payslips as backup evidence
That is it. Not glamorous, not complicated, but very useful.
A P45 is issued when you leave a job. A P60 is issued after the tax year ends if you are still employed on 5 April. The P45 helps your next employer and HMRC understand your tax position during a job move. The P60 summarises your pay and tax for the full tax year.
The real issue is not memorising payroll terminology. It is understanding what these documents do in practice. They help prevent tax errors, support proof of income, and keep your employment records clean.
If you are changing jobs in the UK, pay attention to your P45. If the tax year has ended, check your P60. And if anything looks wrong, ask early. Payroll problems rarely improve by being ignored.
Written by Simar Malhi, a recruiter and headhunter with international recruitment experience. I write about CVs, job applications, hiring decisions, and the reality behind recruitment processes. My goal is to help candidates understand more honestly how employers, recruiters, and hiring managers actually select candidates.
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