P60 vs Payslip: Which One Matters More for Tax and Proof of Income?

Updated:

October 9, 2025

If you’ve ever applied for a mortgage, a loan, or a new job, you’ve probably been asked to show a payslip or a P60. Both are important payroll documents — but they serve very different purposes. Here’s how they compare, when you’ll need each, and why it’s worth keeping both safe.

✅ What Is a Payslip?

A payslip is a breakdown of your pay for a specific period — usually weekly or monthly.

It shows:

Gross pay (before deductions)
Net pay (after deductions)
Income Tax and National Insurance contributions
Pension or student loan deductions
The pay period it covers

Every employee must receive a payslip on or before payday, either digitally or on paper.

👉 Think of it as a running record of your income throughout the year.

✅ What Is a P60?

A P60 is your annual summary. It’s issued by your employer at the end of the tax year (no later than 31 May) and shows your total pay and deductions for that year.

You’ll need your P60 when:

Applying for loans or mortgages
Checking your tax record
Claiming benefits or tax refunds

👉 It’s your official “year-end snapshot” of everything on your payslips combined.

🔍 P60 vs Payslip: The Key Differences

Feature	Payslip	P60
Frequency	Every payday	Once per tax year
Issued by	Your employer	Your employer (if employed on 5 April)
Shows	One pay period’s details	Full tax year summary
Purpose	Track monthly income and deductions	Official proof of annual earnings
Used for	Checking your tax code, verifying pay	Mortgages, benefits, or tax claims

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🏦 Which One Do Lenders or HMRC Prefer?

For proof of income, most banks, mortgage lenders, and government departments prefer a P60 because it covers your full year’s earnings.

However, if your latest P60 isn’t available yet (for example, early in the new tax year), recent payslips are usually accepted instead.

💡 Why You Need Both

Payslips let you track your pay, tax, and deductions in real time.
P60s give you the official, year-end summary HMRC relies on.

Together, they help you stay accurate, compliant, and ready for anything from tax refunds to mortgage checks.

📦 Keep Both Safe

Always store your digital or paper copies securely — ideally for 6 years. If you lose one, it’s quick to get replacements:

🔗 Internal Links

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