All employers are legally obliged to issue P60s to employees by 31 May. This is a deadline, so aim to send them before this date. You can use your payroll software, such as BrightPay, to produce them. They can be issued to employees in paper form or electronically. Employees need their P60 to claim back overpaid tax, to apply for tax credits, or as proof of income if applying for a loan or a mortgage.
You need to provide a P60 for each employee on the payroll who was working for you on the last day of the tax year (5 April). Therefore, you’re not required to issue P60s to employees who have left your business during the tax year.
Go paperless. We encourage employers to supply P60s digitally to employees. There are many digital options available to you in BrightPay such as email or through the secure online portal, BrightPay Connect. If you do decide to print P60s, there is no need to buy special print paper, as P60 layouts produced by BrightPay have been approved by HMRC for printing on to plain paper.
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If you miss the 31 May deadline to issue P60s to employees, you could face hefty fines from HMRC. The initial penalty for missing the deadline is £300, followed by an additional fine of £60 per day after that. So, if you miss the deadline, make sure to give your employees their P60s as soon as possible or the fine will keep increasing. However, if you miss the P60 deadline due to a genuine error and you take steps to issue the P60 as soon as possible, a fine is less likely.
To assist employers in completing the 2020/21 tax year and transitioning to tax year 2021/22, BrightPay have compiled a list of frequently asked questions, answered by payroll experts.