What is L17 Statement of Earnings?

The L17 Statement of Earnings is an official HMRC form that’s used as proof of income for individual taxpayers.

If you are an employer and an employee asks you to provide them with a Statement of Earnings you are legally bound to do so. But what information do you need to complete an L17?

What’s on a Statement of Earnings?

An L17 Statement of Earnings form is only completed by employers and requires the following information about the employee:

• Name
• Date of birth
• Occupation
• National Insurance number
• Date employee started working for you
• Payroll/clock number
• Gross earnings, including overtime, bonus and commission payments + Tax deducted + National Insurance – divided into Month 1, Month 2 and Month 3
• Reason for any monthly variations
• Usual number of hours worked each week
• Tax code
• If any of these changes are expected in the next 12 months: lump sum bonus/commission, pay rise, return to work after maternity/sickness, any other reason – enter £ amount and date
• Benefits in kind
• Current time off dates
• Employer’s name, job title, phone number, date, signature and stamp

The statement of earnings is similar to a P60 or P45, without the restriction of a particular issue date.

A copy of an individual’s Statement of Earnings can be requested at any time of year as evidence of income for the prior 3 months. And employers are legally obliged to provide them upon request.

It’s not just full time employees that might need an L17. Employers may also be asked to issue them for employees that don’t earn over the Personal Allowance threshold, part-time workers and any former employees that worked for you in the last four tax years.

Why do people need an L17 Statement of Earnings?

People need an L17 Statement of Earnings in situations where they need proof of income. This includes proof of identity, mortgage applications, requesting a loan, applying for tax credits and during certain legal proceedings.

As an employer, you need to get a copy of a Statement of Earnings to an employee within 14 days.

Most situations that require a Statement of Earnings are time sensitive. So you can approach HMRC yourself on 0300 200 3300, as an employee, if your employer hasn’t got it to you.

Self employed taxpayers don’t use L17 Statement of Earnings forms

Self employed taxpayers need to use their accounts and SA302 (self assessment tax return) as proof of income. For example, a mortgage lender will usually need tax returns for the last three tax years, as well as your other supporting financial documents.

You can find these in your online business tax account and your accountant or broker will help you compile all the other information you need.

Incorrect Statement of Earnings forms

Mistakes happen to the best of us. So if you get an L17 form that’s incorrect, your first port of call is your employer. They can fix any errors and resubmit it to HMRC.

If, for whatever reason, your employer can’t help you should go directly to HMRC. Make sure you’ve got your information to hand when you call.

They’ll need all your basic details, like National Insurance number, as well as your P45 or P60. Then they can help you towards a correct tax calculation.