If you’re self-employed whilst also working for an employer, you’ll need to include your employment details on your Self Assessment tax return. This means that for each employer that you have worked for in a tax year, you will need to know:
their PAYE code
your gross pay
how much tax and NI you have paid
Fortunately, all of this information can be found on your P60.
Using a P60 for Self Assessment
As well as providing details about self-employed income, sole traders also need to include information about any employed work when submitting their Self Assessment.
The P60 shows how much pay you have received during the year, as well as how much tax has been deducted from your income, and any National Insurance that has been paid. This makes your P60 an incredibly useful document when the time comes to complete your Self Assessment tax return.
Real Time Information is compulsory for all employers, where information of pay and tax deductions is reported to HMRC each time a payment is made to an employee. Employers also have a legal responsibility to provide employees with a P60 at the end of each tax year. It’s your record of what your employer has told HMRC about your earnings. So, not only is it useful to check that it’s correct, using your P60 ensures that you provide the right information on your Self Assessment tax return.
Your P60 can also be used as proof of income, such as when applying for a mortgage or bank loan, or for benefits applications. If your earnings are a combination of employed and sole trader work, you might need your P60 and a SA302 to prove your earnings for finance applications.
Your employer can provide a duplicate P60 if you lose your copy, and they can be sent either electronically or provided as a paper document.