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I got this once. I was equivocating, and then the guy was like, well, you're gonna give us your P60 when you join anyway, so you might as well tell me.

I was like, okay, fair enough.

I played it completely wrong though. I should have just reframed it and said, well, I paid this, but you're not competing against my current employer, you're competing against Meta, who I'm also interviewing with this week.

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This is very dodgy on their part. Personal tax details should not leak out from the finance department.

In small companies this does mean people have to operate with internal Chinese walls in their heads.

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for others like me

"A Chinese wall or ethical wall is an information barrier protocol within an organization designed to prevent exchange of information or communication that could lead to conflicts of interest. For example, a Chinese wall may be established to separate people who make investments from those who are privy to confidential information that could improperly influence the investment decisions. Firms are generally required by law to safeguard insider information and ensure that improper trading does not occur."

"Bryan Garner's Dictionary of Modern Legal Usage states that the metaphor title "derives of course from the Great Wall of China",[2] although an alternative explanation links the idea to the screen walls of Chinese internal architecture.[3]

The term was popularized in the United States following the stock market crash of 1929, when the U.S. government legislated information separation between investment bankers and brokerage firms, in order to limit the conflict of interest between objective company analysis and the desire for successful initial public offerings.[4] Rather than prohibiting one company from engaging in both businesses, the government permitted the implementation of Chinese-wall procedures."

https://en.wikipedia.org/wiki/Chinese_wall

though I still don't get the China reference, Great wall of China never really helped against any attacks or exchange of information, so I still don't get the etymology

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I have never visited but I imagine two people one on either side cannot hear each other even if they shouted, and of course cannot see each other. The etymology need not be based on history or practical use.
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I've lived in China and visited multiple times and you could certainly shout and hear someone from the other side (if you are not in touristy noisy section), it's really not that huge while you are right under the wall. I mean if you can shout in mountain and someone can hear you hundreds of meters away, they can certainly hear you over some 2-3 floors tall building.
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Yep, the advice I always give people for this question is to respond:

"My current salary is xyz, but I'm currently interviewing with several companies, so my salary expectations are tied to what I'm worth in the market, not my current pay. My specific ask will change as interviews progress"

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You don’t _have_ to give them a P60 though, right?
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You do have to give them a P45 and they can work out your pay from your tax code.
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You don't have to give a P45. It might mean that your first salary is on the wrong tax band, but that sorts itself out fairly quickly. See https://www.gov.uk/guidance/starter-checklist-for-paye

They also don't know if your tax band is due to salary, loans, deduction, pensions, second incomes etc.

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HMRC seem to be able to provide a new employee's correct tax code almost instantly these days (part of the Making Tax Digital programme, maybe?).

I changed job last year and wasn't asked for a P45 by my new employer. Despite starting near month end, my first month's payslip already had the right tax code.

The days of being stuck paying emergency tax for months finally seem to be at an end!

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i don't know what a P60 is, but you are unlikely required to give them anything except background checks and proof of qualifications until the salary is decided and the contract is signed.
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Its usual to give your new employer the your P45 because they need that to calculate your tax.
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after you negotiate the salary though. the point is that no information is disclosed until the salary is negotiated.
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Candidates can just lie in Europe. There is no equivalent to The Work Number, for good reason.

https://en.wikipedia.org/wiki/The_Work_Number

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i'd also like to ban asking for a salary expectation. it puts you in a very weak bargaining position. also my expectation depends very much on the type of work i'll be doing. i'll accept a lower salary for a good job and work environment, but i won't know that until after some interviews.
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A candidate can just make up whatever number they want to respond though. Most candidates I interview usually say what they want to get, not the real number.
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I don't think you can lie because that would be fraudulent. You can definitely refuse to answer though
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I've normally replied with "I'm looking for X - Y range", and if they push for my previous salary, I say "I make X all in", and include equity, benefits, etc in my number.
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It's not a clearly-defined number, though.

For instance, to compare with a contractor's day rate or an American view of "total comp", a UK employee will have to take their headline salary and add the value of all benefits, paid holiday days, employer pension contribution, Employer NICs, and potentially even the additional value from being able to take certain benefits through salary sacrifice.

Very few people who're used to being on PAYE will do all of that. They'll either just state the headline salary figure or stretch it a bit to cover some (but typically not all!) of the benefits. In other words, it's usual for many people in the UK to under-state the value of their total package even if they believe they're over-egging it.

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I don't see what that has to do with my comment. Intentionally lying in the job application would be fraudulent.
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In which country/jurisdiction?
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I am not sure about other EU countries, but in Germany you have the right to lie in this situation since the question was very likely illegal in the first place. There are other topics which an employer is not allowed to ask about in German. For example about pregnancy or planned pregnancy. You always have the right to lie when you get one of these questions.
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In the US, there's a good chance your employer voluntarily reports your salary to private groups, who then sell the data to other employers. So they will know if you're lying.
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