A P60 is an important document for employees as their P60 summarises their total pay and deductions for the year and is essential for the employee to check that they have paid the right tax and take action with HMRC to reclaim any overpaid tax or identify any payroll issues to you, their employer. This guide provides a step-by-step guide for employers who need to complete end of year payroll procedures for their employees including raising a P60.
As an employer you must:
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If it's your first return or the rfirst time you have been late and you have a good reason HMRC can be very understanding (despite the bad press HMRC staff are helpful and will work with you whenever they can) BUT the bottom line is that if you are late you are likely to receive a fine of £100 per 50 employees for each month or part month that the P11D(b) is late. Employers can also be charged penalties and interest whenever late in making payments to HMRC.
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iCalculator's P60 Guides and P60 Calculators include detailed information and guidance to help you understand your P60, identify key parts of the P60, explain how your P60 is calculated and what information you need to know and understand about a P60 as an employee and employer. Our aim with the P60 guides is to provide insight into the correct completion of a P60, whether it be an audit as an employer to ensure your end of year certificates are calculating correctly or as an employee to check that you have paid the right amount of income tax and, if not, how to claim any overpaid tax back.