The P45 & P60 forms Flashcards
Understading the use of the P45 and P60 and their differences (23 cards)
What is a P45?
A P45 is a form issued by an employer when an employee leaves their job, detailing their pay and tax deductions.
What is a P60?
A P60 is an annual summary of an employee’s pay and tax deductions provided by the employer at the end of the tax year.
True or False: A P45 is issued at the end of the tax year.
False
When should a P45 be issued?
A P45 should be issued when an employee leaves their job.
When is a P60 typically issued?
A P60 is typically issued after the end of the tax year, by May 31st.
Fill in the blank: A P45 includes details about an employee’s ________ and tax deductions.
pay
What information is typically found on a P60?
A P60 includes total earnings, total tax paid, and National Insurance contributions over the tax year.
True or False: Both P45 and P60 are used for tax purposes in the UK.
True
Which form is used when starting a new job?
P45 from a previous employer.
What happens if you do not receive a P45 upon leaving a job?
You may need to provide your last employer’s details to your new employer for tax purposes.
Is a P45 required for tax calculations in a new job?
Yes, a P45 is required to ensure correct tax deductions.
True or False: A P60 is only required for employees earning above a certain threshold.
False
What is the primary purpose of a P45?
To inform the new employer of the employee’s previous earnings and tax payments.
How often is a P60 issued?
Annually, at the end of the tax year.
Fill in the blank: A P45 must be provided to the employee when they ________ from their job.
leave
What should you do if you lose your P60?
You should request a replacement from your employer.
What is the difference between P45 and P60 regarding the timeframe of issuance?
A P45 is issued upon leaving a job, while a P60 is issued at the end of the tax year.
True or False: A P60 can be used to claim back overpaid tax.
True
What form do you need to provide to HMRC if you do not have a P45?
A P46 or your last employer’s details.
What does the ‘Tax Code’ on a P45 indicate?
It indicates the employee’s tax allowance and how much tax should be deducted.
What is the significance of the ‘National Insurance number’ on both P45 and P60?
It is used to track the employee’s National Insurance contributions and entitlements.
If the P45 of a new starter isn’t available, what form should be used?
New Starter Checklist
How long is a P45 valid for?
A. 12 months from the date of issue
B. Until the end of the tax year in which it was issued ✅
C. Indefinitely
D. 6 months from the date of issue
B. Until the end of the tax year in which it was issued
