The deadline for employers and acting agents to issue a P60 form to employees is 31st of May 2023. As the deadline approaches, what preparations should you be making?
What is a P60?
A P60 is an end-of-year certificate that provides a summary of an employee’s total pay and deductions for a tax year. The information provided on a P60 includes:
- The tax year
- Employee identification
- Employer details and PAYE reference
- Final tax code
- National insurance (NI) number
- Payroll / works number
- NIC table letter(s)
- Total pay (current and previous job if in the same tax year)
- Tax deducted
- National insurance contributions (NICs)
- Statutory payments
- Student / postgraduate loan deductions.
The form can be provided as a paper copy or electronically. Payroll software providers such as Qtac have the facility to produce a P60, which is usually a part of the year-end process.
A P60 can be produced from the Qtac software from “Reports > Year End > Electronic P60’s”. If you have the company name selected the software will run the P60’s for the whole company. For more information on P60’s please click here.
If an individual is receiving a state or private pension, they’ll still receive a P60 from their provider, detailing any taxable income.
For the tax year 2022/2023, 31 May 2023 is the last date by which all employees that were still employed on the 5 April 2023, should receive a P60. Employees that left during the tax year (6 April 2022 to 5 April 2023) should be provided with a P45 form.
Why is a P60 necessary?
The form can be used as a source of proof of income received and tax paid. A P60 may also be required for various other reasons, including:
- To claim a tax rebate
- For benefit claims
- Loans and mortgage applications
- To solve a query with HMRC
- To file a self-assessment tax return.
What happens if I miss the deadline?
If you miss the 31st May 2023 deadline to issue P60s to employees, you could face large fines from HMRC. This is why we strongly advise to start preparing now for this year’s P60 deadline, to avoid the possibility of any fines.
Click on the following links for further information on P60s:
Payroll: annual reporting and tasks: Give employees a P60 – GOV.UK (www.gov.uk)
P45, P60 and P11D forms: workers’ guide: P60 – GOV.UK (www.gov.uk)
Getting P45, P60 and other forms: employer guide – GOV.UK (www.gov.uk)
