What to do with your P60s when you receive them

This week we look at P60s & what you need to do with them. Thank to Robert from Rockwell Financial Management…better dust off those medical expenses sooner rather than later


– Okay. Good afternoon. Justin from Talent Force recruitment. We are all about flexible, professional jobs. We are joined again by Robert from Rockwell. Robert, employees this time of year, in the first couple months of the year, they’re getting a P60 from their employers.

– Yes.

– It’s good news.

– Of course it is.

– So, what do you do with it? What’s it’s purpose and what should I do?

– Okay, firstly, a P60 is a record of your earnings and tax paid for the previous tax year.

– Okay.

– The reason why it’s important is it’s ultimately telling you exactly how much tax you paid and also you’ll get, two copies of your P60.

– Yes.

– Because one is a record for Revenue as in pay what you tax has paid. And the second one is regarding your social welfare contribution.

– Ah ha.

– Those all important credits and stamps. That’s why you get two of them. Always retain it. Whilst Revenue will have their own copy, there’s nothing better than having your own copy of your P60. What you do with it is very important. Everyone thinks that you have to wait until October of this year before you start claiming-

– It’s pretty well publicized.

– Yes.

– The file and submit deadlines.

– Pay and file deadlines and all of that because that’s the deadline. But just because it’s a deadline, doesn’t mean you can’t, so… Me personally, I have no desire to give the Revenue Commissioners an interest-free loan.

– For nine months or ten months.

– No why would I want to give you my money right now? So, if you have any medical expenses from 2017, as soon as you get your P60, you can submit your-

– Really?

– Absolutely. You can look for your P21 and get your claim back. If you have a liability and, sorry. If you have some spare cash, and you’re looking at your tax bill and your P60 going, crikey, look how much tax I pay.

– Sure.

– You can also, obviously, make a pension contribution in respect of last year. And you can get that back immediately. So for instance, if you put 5000 in as a single premium contribution, and you’re in a 40 percent tax bracket, well then, and you did it this week,

– Okay.

– You could claim back when you did your, say your P60 came next week, you’d have your money in your account by the first of February, three weeks time. Whatever time this goes out. And you’ll have your money back from Revenue, and there’s two grand back in taxes.

– Six months earlier than most of us.

– Yeah, you’re just giving Revenue an interest-free loan.

– Okay. So, P60, it’s a statement of your tax, your PRSI,

– Very important to keep a record of it.

– Your credit. Put it aside. Both copies somewhere safe.

– Or even better. Scan it and save it to the cloud.

– Scan it and take your Med Ones,

– Absolutely.

– Take your dental expenses.

– Everything you can. You can claim them all. As soon as you get your P60.

– Do that now. And is that a form you fill out? Or, is that all online?

– It’s all online. In fairness to Revenue, it’s so easy claim.

– They do make it simple, don’t they? Okay, P60s explained. Robert, thank you so much.

– Pleasure.

– You made it, you’ve just clarified. You just drilled it all the way down. Justin from Talentforce. We’re all about flexible, professional jobs, send us an email: hello@talentforce.ie Or, give us a call 01 9081514. Robert, thank you.

– Pleasure.

– Take care. Bye bye.

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