What is a P60?

A P60 is an essential document issued by an employer at the end of a tax year in the UK. It provides a comprehensive summary of an employee's total taxable earnings and the amount of tax that has been deducted from their pay during that tax year. This document is crucial for employees as it details their income and tax contributions, which they need for personal tax returns, applying for loans, or confirming income when required.

The significance of the P60 lies in its role in ensuring that employees have accurate records of their earnings and tax deductions, and it helps in verifying compliance with tax regulations. It is an official record that may be referenced by tax authorities if needed.

Other options, such as records of job performance, employee holidays, or training initiatives, do not align with the primary function of a P60, which is specifically related to financial earnings and tax.