Reminder: P60 forms are due by 31st May
If you haven’t already, you’ll need to provide your employees with a copy of their P60 forms by the 31st May.If you need a quick refresher, this blog will cover who needs to get a P60, what it need to include and how to get it finished faster than ever.
Who will get a P60?
You’ll need to give a P60 to each employee that was on your payroll on the last day of last tax year.
You won’t need to issue a P60 to any employees that have left your payroll during that tax year, as they will have received a P45 with the same information on it.
What is included in a P60?
The P60 form is an end-of-tax-year statement that provides a summary of each employee’s pay and the deductions made from their Gross Pay over the previous tax year.Employees will use their P60s to prove how much tax they’ve paid on their salary. This kind of information is useful when they’re making a claim for overpaid tax or making an application for tax credits. It’s also important when employees need proof of income for loans or mortgages.
How should a P60 be formatted?
P60 forms can be provided electronically or on paper.
Most businesses choose to send electronic P60s, like IRIS OpenPayslips. With this system, you can deliver payslips and P60s directly to your employee’s online portals. This removes the burden of printing, sealing, sorting and sending payroll forms – as everything is handled with the press of a button.
You can also ensure that the P60 is correctly formatted for both employee and HMRC. As they’re automatically stored for 6 years, you can also ensure you’re compliant with The Pensions Regulator (TPR).
Learn more about the advantages of using electronic payslips and P60s here.What I need to make changes to the P60?
Ensure that the new P60 is marked as “replacement” in either the paper or electronic form, and include a letter confirming the change to your employee.
What if an employee has lost their P60?
As an employer or payroll professional, you’re legally obliged to keep pay records for at least 3 years.
As a result, you should be able to provide employees with a new version of their P60 should they request one. If you do, make sure this has been clearly marked as “duplicate”.
If your employee requests a P60 form from more than 3 years ago but you haven’t got a copy, you can provide them with a ‘statement of earnings’ on company-headed paper instead.
It’s my first time issuing P60s
If this is your first year-end and you’re a little overfaced by everything it involves, or you’ve taken on payroll but still have plenty of other jobs to be getting on with, then take a look at IRIS Payroll Business – payroll software designed for businesses just like yours.
Running payroll is an essential part of employing staff, but there’s no need for it to be difficult or time-consuming. Our payroll software does all the hard work for you; you simply have to enter your numbers and get the results! Learn more: https://www.iris.co.uk/iris-solutions/payroll-and-hr-professionals/for-small-to-medium-sized-businesses-up-to-250-employees/iris-payroll-business/