How to issue P60s to your employees

How to issue P60s to your employees

This blog gives an overview of the importance of issuing P60s to your employees. It is based on information obtained from the HMRC web site https://www.gov.uk/payroll-annual-reporting/give-employees-p60-form

Overview

An employer must give a P60 form to all employees that are working for them on 5th April (the end of the tax year). The employee must receive their P60 by 31st May.

The P60 form shows the employee the gross salary they have received during the tax year and any tax deducted from this salary.

What are P60s be used for?

An employee will need their P60 to prove how much salary they have received and how much tax they have paid on their salary. This can be useful:-

  • to claim back overpaid tax
  • to apply for tax credits
  • as proof of income if they apply for a loan or a mortgage

Producing P60s

The payroll software being used by the employer should be able to automatically produce a P60. This can be given to their employees either in paper or electronic format.

Blank copies of P60s can be order from HMRC if the payroll software does not automatically produce them.

If you need to change a P60

Should you need to change a P60, you can give your employee either a:

  • new P60 marked “replacement” – this can be paper or electronic
  • letter confirming the change

For further information, please contact Stallion Accountancy Services.

About the author...

George Greer is an experienced ACCA qualified Business Owner with a demonstrated history of working in the accounting industry. He is skilled in Accounts and Finance Management, Budgeting and Business Planning with excellent knowledge of Sage and Xero Products. Strong professional with a BSc focused in Business Computing Systems from City University London.

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