Credit Score Basics > What to do if your P60 does not match your salary

What to do if your P60 does not match your salary

Wollit Team2 minute read · Updated 17th September 2024

If your P60 doesn’t match your salary, it can be confusing and may cause problems, especially when you apply for loans or mortgages.

Your P60 is an important document that shows how much you earned and how much tax was taken out. Here is when it might not match your salary, what you can do to fix it, and how it relates to your credit score and loan applications.

What is a P60 and why is it important?

A P60 is a tax form given to employees in the UK at the end of each tax year (which runs from April 6 to April 5 the following year). It shows your total earnings and the tax you paid during that year.

A P60 is important for a few reasons:

Lenders often ask for your P60 to check your income when you apply for a mortgage or loan.
A P60 summarizes your earnings and tax payments, which you may need for tax returns.
If there are issues with your income, your P60 can also help resolve them with HM Revenue and Customs (HMRC).

When might a P60 not match my salary?

There are several reasons why your P60 might not match your actual salary:

Sometimes, employers simply make mistakes when calculating pay. This can include entering information incorrectly or misreporting your bonuses or extra pay.
Employers may also include extra benefits (like a company car or health insurance) on your P60, which can make your total earnings look higher than your actual salary.
If you have more than one job, you will receive a separate P60 from each employer. Make sure all your earnings are added up correctly.
Your tax code may change during the year, affecting how much tax is taken from your salary. If you don’t know about these changes, it can lead to confusion.
If you are on a zero-hour contract, you might not get paid for all your holiday time, which can cause differences between what you expect and what is reported on your P60.

What should I do if my p60 does not match my salary?

If you notice that your P60 does not match your salary, follow these steps:

Check your P60 against your payslips for the year. Look for any differences in the total earnings reported.
Talk to your HR or payroll department about the differences. Ask them how they calculated your P60 and if any mistakes were made.
If your employer cannot resolve the issue, contact HMRC. Provide them with copies of your P60 and payslips and explain the problem.
If you’re still not satisfied, you can file a formal complaint with your employer or HMRC.

How can this affect my credit score?

Differences between your P60 and your actual salary don’t impact your credit score.

However, lenders usually check your P60 to verify your income. If there are differences, it could lead to a few issues:

You might be refused for a loan even if you can technically afford the repayments.
If you are approved for a loan, you might get worse terms, like higher interest rates.

This is why, before applying for a loan, fix any issues related to your P60.

Also, don’t forget to take steps to improve your credit score, as this is the other thing that lenders care about.

One of the ways to improve your score is to download a credit-building app like Wollit.

Wollit works by reporting a fixed fee monthly subscription as a loan repayment to the credit reference agencies (Experian, Equifax, and TransUnion). This helps you build or rebuild your credit history by showing that you can pay debt on time. It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills when they’re due. In time, this will help you improve your credit score so you won’t need to be worried about any credit check ever again.