Navigating the P60 Deadline with Ease
Remember to issue P60s to employees by May 31st. This deadline is not only a legal requirement but P60s are needed by employees when it comes to claiming tax refunds or applying for a mortgage or loan.
·3 min read
It’s crucial to remember the importance of issuing P60s to employees. The P60 deadline is on the 31st of May, and is not only a legal requirement but P60s are also needed by employees when it comes to claiming tax refunds or applying for a mortgage or loan.
Who needs a P60?
It’s essential to provide a P60 for each employee who was on your payroll on the last day of the financial year (5th April). This requirement does not extend to individuals who have left your employment during the tax year.
How do I issue P60s to employees in BrightPay?
The P60 option is located within the ‘Employees’ section in BrightPay.
Click P60 on the menu bar and from here you can print or download P60s for individual employees or for multiple employees at the same time.
P60s can also be made automatically available to employees through their Employee Self-Service Portal. You can choose for them to become available when the final payslip of the tax year is available, on May 31st, or at a time and date of your choosing before May 31st. This can be changed under the Document Availability Settings section by going to Employer > Edit Employer Details > Employee Portal.
Reasons we recommend sharing P60s through the Employee Self-Service Portal
1. You can’t miss the deadline: As P60s will be made automatically available to employees at a time of your choosing, no later than 31st of May, it ensures that you don’t miss the important deadline.
2. Enhanced security and compliance: BrightPay’s Employee Self-Service Portal offers superior security features compared to emailing P60s or distributing physical documents. The portal uses data encryption, ensuring sensitive payroll information is protected against unauthorised access. Using an online portal to distribute P60s to employees also enhances GDPR compliance by ensuring that access is exclusively granted to authorised individuals.
3. Immediate accessibility: Employees can access their P60 anytime, anywhere with an internet connection. This eliminates the wait for physical copies or email deliveries, providing instant access, whenever they need it.
4. Environmental sustainability: By sharing documents online, companies reduce their reliance on paper, contributing to environmental sustainability efforts. This digital approach minimises waste and carbon footprint associated with printing and mailing documents.
5. Streamlined record keeping: The employee portal simplifies the management and storage of payroll documents. Both employers and employees benefit from an organised, centralised location for their records, making it easier to retrieve P60s when needed.
What happens if I miss the deadline?
Failing to meet the May 31st deadline can incur substantial penalties from HMRC, beginning with a £300 fine, followed by daily charges of £60 for every day that you fail to supply an employee with their P60. To mitigate any financial penalties, it’s advisable to issue P60s promptly if the deadline has been missed. That said, HMRC may forego penalties for genuine mistakes corrected swiftly.
Related articles:
This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.
Talk to our team
See how Bright can help your practice.
