Don’t forget to handout P60s
The deadline for employers to provide employees with a copy of their P60 form is by 31 May 2018. A P60 must be given to all employees that were on the payroll on the last day of the tax year – 5 April 2018.
The P60 is a statement issued to employees after the end of each tax year that shows a summary of their pay and deductions for the previous tax year. Employers can provide the P60 form on paper or electronically.
Employees should ensure they keep their P60s in a safe place as it is an important record of the amount of tax they have paid.
A P60 is required in order that an employee can prove how much tax they have paid on their salary, for example to:
- Make a claim for overpaid tax
- Make an application for tax credits
- Show as proof of their income if they apply for a loan or a mortgage.
Employees who have left their employment during the tax year do not receive a P60 from their employer, as the same information will be on their P45.
Most payroll software allows employers to produce P60’s automatically. If an employer’s payroll software does not automatically produce P60s they can be ordered from HMRC.
Employees should check their P60 to ensure that the figures are accurate.
Source: HM Revenue & Customs | 18-04-2018