- Who the employee is ??Including their name and address, national insurance number,?and employee number
- Who their employer (you) are ??Including your business?s name, address and PAYE reference
- How much the employee was paid during the course of the year ? Covering both their current employment with you and any others they may have had during the year, as well as any form of pay such as salary, sick pay or bonuses
- How much tax the employee paid during the course of the year ? Again, across all the jobs they had
- What national insurance contributions the employee paid during the year ? Again, as a total across all forms of employment
- Any student loan deductions made ? If the employee has been paying back the government?s student loan from their time studying
What are dividends and why are they important? If you are the shareholder of a business then asking what are dividends is something you?re going to want to do to maximise your return on investment. __________________________________________________________________________________ And, when we talk about ?the year?, we really mean the tax year, which runs from 6 April. It?s essential for the employee to keep all their P60s, in case they need to prove their tax and NI contributions. ?I still have my very first P60, from back in 1990 where my pay was a grand total of ?1,151.50 (which meant I paid exactly zero tax).
The difference between P45 and P60I?ve changed jobs a few times since then, and on each occasion my employer was required to give me another tax form ? this time the P45. If you employ people and they are leaving your business, then the P45 is the form that you need to generate. It comes in three parts:
- Part one gets sent by their employer (you) to HMRC
- Part two for the employee
- Part three for the employee?s new employer ??This then gets split into two parts: One part for the new employer, and one part which the new employer sends to HMRC
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