P60 deadline missed? How to avoid a fine and get back on track

31 May 2019 is this year’s P60 deadline for employers with a payroll, but is there a fine if you miss it?

And if you’re running behind, what do you need to do to be compliant? Use our quick P60 guide to get back on track.

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It’s one of those annual to-dos which, ideally, you’ve set a reminder for. But if P60s have slipped down the priority list, and you've missed today's deadline, what do you need to do? Read our quick guide to P60s to get you and your employees sorted.

1. What is a P60?

Your employee’s P60 summarises their total pay and deductions for the tax year (6 April to 5 April the following year).

It’s an official document which clearly states pay (from their current and any previous jobs during the tax year), total tax deducted through PAYE, National Insurance contributions and any student loan or statutory payments, like maternity pay.

They’ll need to receive it every year by 31 May, and it can be paper or electronic.

2. Do my employees need a P60?

All employees on your payroll who were working for you on the last day of the tax year (5 April) will need a P60.

If you run a limited company and draw a salary, you’ll need to issue yourself a P60 (sole traders don’t draw salaries, and won’t need to do this).

3. How do I get P60 forms?

If you’re using payroll software which automatically produces P60s, this will be much quicker. If not, you can order copies from HMRC, but bear in mind these will take at least seven working days to arrive.

Another option is to use HMRC’s Basic PAYE tools, which provide free payroll software for businesses with fewer than 10 employees.

Your P60s can be printed or digital, but currently, you can’t download blank copies.

4. P60 deadline fines – what can I expect?

First thing's first, if you’ve missed the P60 deadline, make sure you give your employees their P60s as soon as possible. The longer the delay, the more likely you are to get a fine.

HMRC do have the right to charge initial penalties of around £300 for late issuing, plus around £60 every day after that, until you issue the P60. However, this depends on reporting and enforcement. If it’s a genuine error and you take steps to issue the P60 as soon as possible, a fine is less likely.

5. How can I change a P60?

Made a mistake? If you need to issue a new P60, HMRC’s guidance is to make sure it’s marked ‘replacement’, or give your employee a letter confirming the change.

P60 help and support

P60s are usually easy to sort out, once you have the right tools and guidance. Bookmark these HMRC pages to get you started:

Payroll hub

Basic PAYE tools

Stationery and forms phone line

Employers general enquiries