P60 Employer Checklist 2024 | Employer Compulsory Actions

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.

Employer Compulsory Actions

As an employer you must:

  1. Issue a P60 to all of your employees who were employed on the 5th April (the end of the tax year) no later than the 31st May in the same tax year. So for the 2024/25 Tax Year you must issue a P60 for 2024/25 for all employees employed on 5th April 25 by 31st May 25. Most Payroll software includes the ability to raise a P60, if you dont have access to payroll software you can use our P60 generator and print off a P60 for your employee(s) or you can order copies of P60 certificates directly from HMRC and fill them in manually.
  2. If you change or provide a replacement P60 you must mark the replacement P60 with 'REPLACEMENT'. It is good practice to provide a supporting letter that details the changes made in the P60 and provide a copy of the letter with the Replacement P60 to your employee. You should also retain a copy of the letter so that you have a clear documented account process for audit purposes.
  3. Submit a P11D to HMRC for each employee that you has received expenses, benefits or both. Note that you don't need to submit a P11D if you use an automated payroll software but this must be registered with HMRC before the tax year starts (6th April 2024)
  4. Submit a P11D(b) to HMRC detailing the amounts of Class 1A NIC's paid on expenses and/or benefits to your employees
  5. Keep a record of all expenses and benefits that you pay to your employees. The record should include dates, amounts, description and any other amplifying information (remember, you need to be able to understand and explain your accounts if audited). All records should be kept for 3 years.

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What happens if a miss a deadline?

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.

Next: Employer NIC's Calculator 2024/25

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P60 2024: Guides and Tools

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.