By 31st May, employers must provide P60s to all staff who were employed by them on the last day of the tax year (5 April).
Failure to provide P60s on time is a statutory breach. To help business owners stay on top of this deadline and avoid costly penalties, the business finance experts at money.co.uk business bank s share key planning tips.
Joe Phelan, money.co.uk business bank s expert, comments:
“P60s aren’t just routine paperwork – they’re a statutory requirement. For SMEs, it’s crucial to stay organised and ensure all employees receive their P60s on time. Failing to do so can lead to HMRC penalties, damage your business’s reputation, and cause frustration for your employees. Here are some key tips to help business owners stay on track:
Check employee and payroll details: “Before generating P60s, carefully review employee details such as full names, National Insurance numbers, tax codes, and gross pay. If any information is incorrect, it can trigger HMRC flags, causing delays for employees needing the document for tax returns, loan applications, or other official purposes. Failure to ensure accuracy may result in unnecessary complications for both the employer and employees when they need to file their tax returns or apply for financial products.
Use payroll software or ing tools: “P60 forms are typically generated through payroll software to streamline the process. If your software doesn’t P60 generation, though, you can use HMRC’s free Basic PAYE Tools to create them. This ensures timely HMRC compliance and can save time. Automating the process can help reduce the risk of errors and make it easier to provide employees with accurate records for tax filings or other financial needs, without necessarily incurring the extra costs associated with more advanced payroll systems.
Notify employees when P60s are ready: “Employers must ensure that all employees on the payroll as of 5 April receive their P60 by the 31 May deadline. To minimise confusion or delays, it’s a good idea to proactively notify staff via email once their P60s are available and provide clear instructions on how to access them through payroll portals or secure file-sharing systems.
“Plan for next year: “After you’ve completed your P60s for this year, review your process and make notes on any improvements for the next cycle. Set up internal calendar alerts. Even though your software should keep an archive, it’s also a good idea to export and store backups, as HMRC can investigate records for at least six years.²
“Staying on top of deadlines like these is essential for the smooth running of your business, helping you avoid fines and protect your reputation. With the 31 May deadline fast approaching, make it a priority to get everything in order. You can also apply these tips to future P60 submissions to make the process even smoother going forward.”
