Leeds based Chartered Accountants are reminding business owners to provide all of their employees with a P60 form before the deadline at the end of May.
All employers must provide any employee, who was in their employment on the last day of the tax year (5 April), with a P60 certificate by 31 May 2015 at the latest.
A P60 certificate should summarise each employee’s total pay and deductions for the last year, and can be provided in paper or electronic form.
For some businesses P60 certificates will be produced automatically by their payroll system, but for others it may be their responsibility to provide employees with a form. If payroll software does not automatically produce P60 forms businesses can order copies directly from HM Revenue & Customs (HMRC).
Failure to provide an employer with a P60 could lead to your business being investigated by HMRC and in serious cases could lead to a fine.
Andrew Cowe, Senior Tax Manager at Thomas Coombs, said: “Unlike other deadlines set by HMRC, the cut off date for sending P60 forms to employees does not entail an automatic penalty fine.
“However, P60 forms are an important part of an individual’s tax documentation for the year and can affect their ability to claim benefits, reclaim overpaid tax and even buy a house.
“I would encourage all business owners to ensure that their employees receive a P60 form before the deadline, in order to avoid any potential problems further down the line.”
If you would like help with managing your business’s payroll service, please contact Andrew Cowe, Senior Tax Manager.