HMRC alert ahead of £300 fines – deadline on May 31 | Personal Finance | Finance
With the end of the tax year, the P60 deadline is fast approaching – and employers could face fines for not acting. The P60 form is an End of Year Certificate provided by employers to employees, summarising their total pay and tax deducted for the previous tax year (April 6 to April 5). It details total taxable income, Income Tax, and National Insurance contributions paid through PAYE, as well as statutory payments like maternity and sick pay.
Now we’re past the tax year end date of April 5, May 31 should be your next big number circled in your calendar, as it is the deadline each year for the P60 submission. Missing it carries potentially significant consequences, with HMRC fines starting at £300 and increasing by £60 per day for every day P60s remain outstanting.
Your payroll software should automatically generate P60s for employees, making the process simple and efficient. Employees may occasionally request another copy during the year, particularly when applying for mortgages or loans. An employee payroll app can make this much easier, giving staff instant access to view, download or print their P60 whenever they need it.
Rebecca Alford, Chief Financial Officer at Capital on Tap, said: “With the P60 deadline on May 31 approaching, businesses have a limited window after the end of the tax year to finalise payroll and issue documents correctly. It’s not something you can prepare in advance, which is why having clear payroll processes in place is so important.”
Bosses and employers urged to act within the next four days, with late submissions likely to cause friction between employers and their employees.
If an employee has more than one job, they’ll get a P60 from each employer. You don’t have to worry about collating income tax information from multiple employments.
A P60 is an important document and has several uses. It allows employees to check how much tax has been deducted throughout the year and can help them claim a refund if they have overpaid – something that often happens when changing jobs or being assigned multiple tax codes.
It is also widely accepted as proof of income for mortgage and loan applications, and can be used to verify earnings when applying for certain benefits.
It also provides the key employment income figures required for self assessment.
