P60 and P45 are both important documents related to income and taxes.
P60 is an end-of-year certificate that summarises an employee’s total pay and deductions for the tax year (which runs from 6 April to 5 April of the following year). The P60 is usually issued to employees by their employer at the end of the tax year and shows their total gross pay, total deductions for National Insurance contributions and income tax, and any other deductions made by their employer.
P45, on the other hand, is a document that employers must provide to employees when they leave their job. It shows the employee’s total pay and deductions up to the date they left their job. The P45 contains information about the employee’s tax code, earnings, and any tax paid so far in the tax year.
Both documents are important for tax purposes, as they provide details about an employee’s income and taxes paid during the tax year. It is important for employees to keep these documents safe as they may be needed for future reference, such as when applying for a new job or claiming a tax refund.