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Is your P60 correct?

By now your employer should have sent you a P60 for 2018/19.  This shows your income from that employment in the tax year to 5 April 2019 and the total amount of tax deducted.  If you also received taxable benefits in that year, such as a company car, you should receive a form P11D detailing the value of those benefits.

You will need both of these documents if you complete a tax return, which must be submitted online by 31 January 2020, or by 31 October 2019 if you want to file a paper return.

However, don’t just blindly copy the figures from the P60 on to your tax return, think about what they represent.  If your employer makes a mistake when completing the P60, and you reflect that mistake on your tax return, you are responsible for that error.  An incorrect tax return can attract penalties of up to 30% of the underpaid tax, or 70% of the tax for a deliberate error.

A tax tribunal recently upheld penalties where a taxpayer didn’t check the P60 figure and as a result understated his salary by 45%.  He also failed to declare his taxable benefits.

If you have any queries we are more than happy to help, to avoid such drama.

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