What is a P60?

Wollit Team1 minute read · Updated 28th July 2024

A P60 is a tax document that your employer in the UK must give you at the end of each tax year.

It summarises your total earnings and the amount of tax and National Insurance deducted from your pay during the previous tax year. The tax year runs from 6th of April to the 5th of April.

The P60 serves as proof of income and tax paid, which is essential for things like claiming tax refunds, applying for tax credits, and even getting approved for loans and mortgages.

What does a P60 usually include?

A P60 usually includes things like:

Your name and NINo;
Tax year;
Total taxable earnings for the tax year;
Total tax paid on those earnings;
Your National Insurance contributions for the tax year;
Your tax code;
Your PAYE (Pay As You Earn) reference number.

What do I do with a P60?

The P60 is a useful document for a few reasons:

Shows how much tax you paid for the tax year;
Allows you to check if the correct amount of tax has been deducted;
Helps in claiming tax refunds if you paid too much tax;
Serves as proof of income when applying for loans, mortgages, or renting a property.

Do I need a P60 when going through a credit check?

No, you don’t need a P60 strictly for credit check purposes. However, a credit check is just a piece of a credit application. Since most of them require some proof of income, this is where a P60 usually comes in handy.

Basically, when applying for loans or mortgages, lenders will often request proof of income, which you can give through a P60. Having a P60 that shows stable employment and income can increase the chances of loan approval, which in turn can improve your credit score.

However, the most important thing you can do for your loan approval chances is to work on your credit history. One of the tools you can use for this purpose is Wollit.

Wollit is a credit-building app that works by reporting a fixed fee monthly subscription to the credit reference agencies. This helps you build your credit history by showing that you are a reliable borrower who pays their debt on time.In time, this will help you improve your credit rating so you won’t need to be worried about credit checks and loan approval chances.