P45 and P60 are tax forms used in the UK. The P45 is given when you leave a job, and the P60 summarizes your annual tax and National Insurance contributions.
What are P45/P60 Forms?
These forms are essential for ensuring employees pay the correct amount of tax and for processing new employment details or tax rebates.
Practical Example of P45/P60 Forms:
After leaving her job, a UK employee receives a P45 form, detailing her earnings and taxes paid to date. At the end of the financial year, she receives a P60 form from her new employer.