Filing a tax return is rarely anyone’s idea of an enjoyable activity, but accuracy is crucial to avoid costly penalties and unnecessary complications. Many taxpayers don’t realise that an inaccurate P60 can lead to significant tax issues and financial penalties down the line. This guide explains why precision matters when submitting your tax return and the critical role your P60 plays in this process.

What is a P60?

A P60 is an end-of-year form that provides a summary of your financial situation for the tax year. Specifically, it details your total earnings for the tax year, the amount you’ve paid in National Insurance contributions, your Pay As You Earn (PAYE) income tax payments, your tax code and any changes during the year, as well as details of taxable benefits and deductions.

This information is compiled from your employment earnings or pension income for the relevant tax year. If the P60 comes from a pension scheme, it will identify the pension provider, but it won’t show your contribution frequency or amounts you pay into your pension.

Your P60 serves several important purposes. It acts as proof of tax payment by documenting how much tax you’ve paid during the year, and serves as official evidence of your annual earnings for income verification. The document is frequently requested when applying for mortgages, rental properties, loans, and other financial services for this reason. Additionally, it supplies crucial information needed for completing self-assessment tax returns if you’re required to file one.

Why Checking the Figures Matters

As an employee, it’s tempting to assume all documentation provided by your employer is accurate. However, errors can and do occur. Your employer might unintentionally issue you with inaccurate documents, which will render your tax return incorrect if you’re required to file a self-assessment and your taxes are investigated.

HMRC takes the position that the ultimate responsibility for accurate reporting lies with the taxpayer. If you report incorrect information—whether it’s undeclared benefits, earnings or tax deductions—you could face penalties as a result of carelessness, even if the original error wasn’t your fault.

Accuracy is Important

The accuracy of your tax returns is determined not just by the processes your employer adopts, but your own processes too. No matter the size of the business, whether it’s a team of hundreds or a solo individual, any company can be subject to an audit. The more discrepancies there are with your report, the higher the risk of an audit, so checking everything is correct will save you time and hassle later.

By keeping your records as accurate as possible, and supplying any documentation required by HMRC promptly, you can avoid the risk and save yourself the time of having to deal with an investigation which can be stressful.

Inaccuracies can mean that businesses miss out on deductions and could even end up overpaying, which will affect their profits. What’s more, submitting your return with accurate figures means you’ll have a better overview of how your business is performing and where it stands financially. This will help you make better, more informed decisions as your company grows.

How to Verify Your P60’s Accuracy

Taking proactive steps to verify your P60 can save you significant headaches later. Compare the figures with your final payslip’s year-to-date totals for the tax year, which runs from 6^th April to 5^th April. You’ll also need to ensure your tax code is correct, as an incorrect code can lead to paying too much or too little tax.

Verify that your name, address, National Insurance number and employer details are correct, and take the time to review all deductions to confirm they match what you expect based on your circumstances. If you have more than one job or pension, you’ll receive a P60 from each source—make sure all are accounted for. If you notice any discrepancies, contact your employer immediately to request corrections, and keep records of these communications in case questions arise later.

Digital P60s and Careful Record-Keeping

With the increasing digitisation of tax processes, many employers now provide P60s electronically. These digital documents have the same legal status as paper versions but it’s important that you set up careful record-keeping processes. It’s recommended to save digital P60s in multiple secure locations and keep them for at least four years after the end of the tax year. For property income, self-employment, or complex tax affairs, you should retain records for at least 5 years to ensure you’re covered in case of any future audits from HMRC.

As we’ve explored, your P60 is an important document but it’s vital that you don’t assume the figures are automatically correct simply because they’ve been provided by your employer. Best practices include thoroughly reviewing all tax documentation before filing your return, consulting with a tax professional for complex situations, and keeping organised records of all tax-related documents. Remember, HMRC holds you responsible for accuracy (even if errors originated elsewhere), and filing early to allow time to address any issues that may arise.

Submitting your tax return can be daunting, especially if you’re unfamiliar with the requirements. Working with qualified tax professionals can ensure accuracy and minimise the risk of problems arising from incorrect information.

To find out more or to book the accounting and bookkeeping services of our tax investigation accountants, get in touch with Wellden Turnbull today.

Being a property landlord can be a stable source of income for many people across the UK, as they provide a service to renters. But earning money from being a landlord is a business like any other, and they are liable to pay tax on any form of income they generate. If you are a UK citizen and you own and rent a property somewhere across the UK, you will have to pay a category of landlord tax; this is unavoidable.

It can be easy to be confused by the rules around the taxation of landlords, and it may well be the case that, as a landlord, you are paying too much. Tax advice and management is a really important aspect of being a great landlord, as small changes can be the difference between a healthy profit and just scraping by.

Here we take a look at some important ideas for saving on tax and better tax management for landlords in the UK.

Create a limited company

The first thing to say is that if you want to manage your tax as easily as possible, one option is to form a limited company that you use as a landlord. This can really help by first being able to separate your personal life and finances from those of your landlord finances. But it also has some important tax considerations.

Being a company allows you to offset your expenses against your profit, and it also gives you the option to have someone else manage elements of the property management. It’s a solution that might not be right for everyone, so it is worth discussing it with an accountant experienced in working with landlords.

Understand and make use of tax bands

It is the case that Capital Gains Tax is not usually paid when assets are transferred between spouses. This means that you may well be able to reduce your tax liability by moving some of your assets into the name of your spouse – this could allow you to make use of a lower tax band.

If your spouse’s tax bracket is lower than yours, you may also be able to pay less tax on your rental income as well. And, as long as the property doesn’t have a mortgage and you aren’t taking financial gain from it, you won’t need to pay stamp duty.

Invest in your properties

Landlords are sometimes criticised by tenants for failing to put enough investment into the upkeep of a property. In truth, investing in the properties can be extremely useful from a tax perspective –

not only in terms of renovating and refreshing the property, but also looking into the possibility of extending it.

Of course, it is important to take into account the maximum rental yield you are going to get from a property in the area. Overspending might result in a better tax situation, but you won’t be able to make up for it in terms of the cost of the project.

Consider the possibility of short-term lets

You might be used to managing long-term lets, and this can work for many landlords. But you may not have considered the potential benefits of short-term lets.

One of the major advantages of short-term lets is that it gives you the chance to regularly evaluate the value of the property. That means you can always get a rental yield that is sensible for the area. If you are locked into a long-term contract and the local area rises in popularity, this can mean that you are missing out on income.

Speak to an experienced accountant

Every landlord has different tax needs, and possibly the most valuable thing that you can do is speak to an accountant who has specific experience dealing with landlords and helping them to manage their taxes.

If you are interested in learning more about our bookkeeping and accounting services or any aspect of business finance and payments, get in contact with the experienced team at Wellden Turnbull today.

You might not be aware that it wasn’t until 1920 that women were allowed to be recognised as Chartered Accountants. The very first woman to take that mantle was Mary Harris Smith; this is her story.

Destined to be a great accountant

Mary Harris Smith was born in 1844 in London, and it was apparent from very early in her life that she was a gifted mathematician. Her father, a clerk to a navy agent and a banker, recognised her abilities and encouraged her. At 16, she was studying with a Master of King’s College School, before taking bookkeeping classes.

In 1887, Mary set up her own accountancy firm trading as a M. Harris Smith, Public Accountant. She had huge success and made a good living. It was said that her reputation was such that she was regularly requested to audit the accounts of organisations.

Her first application

While she had success as an accountant and was living comfortably, she yearned for the status and prestige of being a Chartered Accountant. She first applied for membership in the Institute of Chartered Accounts in England and Wales (ICAEW) in 1891, believing herself to be fully qualified to do so.

She was turned away on the basis that women could not be recognised as Chartered Accountants. This decision unsurprisingly rankled her. In 1895, she was quoted saying “Require of me what you would require of a man and I will fulfil it.”

The successful application

She made multiple further attempts to become a member but was turned down each time. Despite her years of accountancy expertise and stellar reputation, it was against the rules. However, thankfully, change was on the horizon.

The Sex Disqualification (Removal) Act was passed in 1919 which made it illegal for ICAEW to refuse to admit accountants based on their sex. Mary applied to ICAEW again and this time she was recognised as the first female Chartered Accountant.

It clearly meant a lot to Mary to be recognised in this way. She was 75 when she was finally admitted as a Chartered Accountant, and she continued working into the late 1920s until her health started to deteriorate.

Blue plaque

It was in May 2020 that the City of London chose to honour Mary’s life – it was the 100^th anniversary of her being accepted by the ICAEW as a Chartered Accountant. A blue plaque was commissioned to be placed in the City – one of just three plaques (out of 182) that celebrate the life of an individual woman.

The plaque will stand at the corner of Queen Victoria Street and Bucklersbury, which is close to where Mary’s office was situated when she was awarded her Chartered status.

A progressive campaigner

As well as being the first female Chartered Accountant, Mary was a vociferous campaigner for progressive women’s rights and feminism. She was a proud supporter of the famous campaign for women’s suffrage and was also involved in movements such as the Society for Promoting the Employment of Women, and the National Union of Women Workers.

Having lived almost her whole life in London, Mary enjoyed retirement in St Leonard’s on Sea in East Sussex and died there in 1934.

We hope you enjoyed learning about Mary Harris Smith, the world’s first female Chartered Accountant. If you are interested in our bookkeeping and accounting services, please don’t hesitate to get in contact with our experienced team today.