P60 vs P45: What’s the Difference and When Do You Need Each?
P60 and P45 — most people know they’re both tax documents, but beyond that it gets hazy. Here’s a clear explanation of what each one is, when you get it, what to do with it, and why you can’t use one as a substitute for the other.
What is a P60?
A P60 is your end-of-year tax certificate. It’s issued by your employer after the tax year ends on 5 April, and it covers your total earnings and all deductions for the full tax year.
Specifically it shows:
- Total gross pay for the year
- Total income tax deducted
- National Insurance contributions
- Student loan repayments (if applicable)
- Statutory pay received (maternity, paternity, sick pay)
- Your tax code at 5 April
- Your employer’s PAYE reference
Your employer must issue your P60 by 31 May following the end of the tax year. You keep it — you don’t give it to anyone unless specifically asked. HMRC recommend keeping P60s for at least four years.
What is a P45?
A P45 is issued by your employer when you leave a job. It shows your pay and tax from the start of the current tax year up to the date you left.
It comes in three parts: one for you to keep, one that goes to your new employer so they can set up your tax code correctly, and one that goes to HMRC. When you start a new job, you hand Part 2 to your new employer.
If you don’t have a P45 when you start a new job — for example because it was your first job, or your previous employer didn’t issue one — you fill in a Starter Checklist instead.
P60 vs P45 — the key differences
| P60 | P45 | |
|---|---|---|
| When issued | End of tax year (by 31 May) | When you leave a job |
| Who gets it | Employees still in post at 5 April | Employees who leave during the year |
| What it covers | Full tax year earnings and deductions | Earnings from 6 April to leaving date |
| Who issues it | Current employer | Previous employer |
| What you do with it | Keep it | Give Part 2 to your new employer |
| Accepted for mortgage? | Yes — lenders specifically request P60s | No — not a substitute for a P60 |
| If lost | Request from employer or use OS Payroll | Cannot be reissued — use Starter Checklist instead |
When you’ll need each document
You’ll need your P60 for:
- Mortgage and remortgage applications — lenders request two or three years of P60s
- Tax refund claims
- Self-assessment tax returns
- Rental references
- Visa and immigration applications
- Benefit claims
You’ll need your P45 for:
- Starting a new job — give Part 2 to your new employer
- Claiming Jobseeker’s Allowance or Universal Credit after leaving work
Can you use a P45 instead of a P60?
No — they serve different purposes and are not interchangeable. Mortgage lenders, in particular, specifically require P60s. A P45 only covers part of a tax year and lacks the full year totals that lenders and other organisations need.
If you’ve left your job and don’t have a P60 from that employer — because you left before 5 April — your options are:
- Ask the employer for a statement of earnings covering the period you worked there
- Get your earnings data from HMRC via your Personal Tax Account at gov.uk
- Create a replacement P60 document with OS Payroll if you have the full year’s data
Frequently asked questions
What is the difference between a P60 and a P45?
A P60 is your end-of-year tax certificate issued by your current employer every May. A P45 is issued when you leave a job and shows earnings up to your leaving date. You keep your P60; you give your P45 to your new employer.
Do I get a P60 and a P45 in the same year?
It depends. If you changed jobs during the tax year, you’ll have received a P45 from your old employer when you left. At the end of the tax year, your new employer will issue a P60 covering your full year (using the P45 figures for the period before you joined).
I lost my P45 — can I get another one?
No — employers cannot reissue a P45. If you’ve started a new job without one, complete a Starter Checklist for your new employer instead. This covers the same information and allows them to set up your tax code correctly.
Why do mortgage lenders ask for P60s and not P45s?
A P60 shows your total earnings for a full tax year, which is what lenders need to verify your income. A P45 only covers part of a year and can’t be used as an annual income statement.
What if I never received a P45 when I left my last job?
Your employer is legally required to issue a P45 when you leave. If they didn’t, contact them to request it. If they’re unresponsive, HMRC can update your tax record directly — contact them on 0300 200 3300.
This post is for general information only and does not constitute financial or tax advice.