As an employer, you need to deduct income tax and National Insurance contributions (NICs) from your employees’ pay and send it to the HMRC.
As an employee, you should receive a P45 or a P60 from your employer that show you the tax you pay on your wages. If you receive benefits or expenses your employer has to send a form P11D to the tax office.
You receive a P45 from your employer when you stop working for them. It shows:
•your tax code, tax reference number and Tax Office
•your NI number
•when you were last paid
•your earnings in the tax year from all your jobs
•how much tax was deducted from your earnings
You are entitled by law to get a P45 when you stop working for your employer.
P60 is a summary of your pay and the tax and the tax deducted during the year.
Your employer should give you a P60 at the end of every tax year (tax year runs from 6 April to 5 April the next year)
It is very important to keep your P60 safe as you might need it to prove your income if you apply for a loan or to claim back any overpaid tax.
Your employer doesn’t have to give you a copy of P11D but he must tell you the details included on the form. This form shows the expenses payments, benefits and facilities provided by the employer.
For more information, you can visit Taxfile‘s tax accountants in South London. Their multilingual staff (including English, Polish, French, Hungarian and Dutch) are ready to help you with any type of tax affair.