The deadline for P60s is May 31st - are you ready?

Under UK government legislation, businesses are required to issue a P60 to every employee who is on the payroll on April 5th, which marks the final day of the tax year. The statutory deadline for distributing these documents to staff is May 31st. 

For both the employer and the employee, the P60 is a primary record containing essential data regarding annual salary payments and the total tax contributions made to HM Revenue and Customs (HMRC). While internal accounts departments typically handle the production of these certificates, HMRC also provides a basic PAYE tool on the GOV.UK website to assist with this process for organisations without dedicated payroll software.

Beyond the P60, employers must also report employee expenses and benefits through the P11D and P11D(b) forms. These filings are necessary for reconciling non-salary benefits provided to staff. It is important to distinguish between the two documents to ensure accurate filing. 

The P11D is an individual form generated for each employee, detailing the cash equivalent value of any "benefits in kind" received throughout the tax year. In contrast, the P11D(b) is the employer’s summary document. This form aggregates the information from all individual P11D forms, declares the total taxable benefits provided by the company, and calculates the specific amount of tax due to the authorities. A P11D(b) form is also required if the company has paid an employee through the payroll system.

HMRC offers several channels for submitting this information. Organisations with fewer than 500 employees may utilise the specific HMRC online service. Additional digital options include the use of interactive PDF files or the submission of existing XML data files generated by compatible payroll software. 

You must use HMRC's PAYE Online service, or a commercial payroll software, to submit your P11D and P11D(b) forms, as paper forms are no longer accepted.

Software providers such as Expend offer systems that integrate technology with accounting workflows to manage expense claims. One functional aspect of this software is a mobile app, which enables employees to record expenses as they occur, rather than submitting them in bulk at the end of a financial period. 

Some platforms provide company expense cards that allow businesses to monitor and regulate employee expenditure in real-time. This technological approach is built to be scalable, meaning the platform can accommodate the needs of small businesses, large corporations, and non-profit organisations without necessitating a change in software as the entity grows.

Integration with existing accounting software is another standard feature of these platforms, intended to ensure that financial data transitions smoothly into the company's general ledger. These systems are typically offered under various pricing structures to remain accessible to different types of organisations. 

By using these centralised tools, companies can manage the administrative requirements of the tax year-end, such as P11D reporting, through a more structured digital process. Contact Expend today to learn more and book a demo.  

Want to read more? Our online blogs cover all aspects of expense management. 

Disclaimer: This is not legal, accounting, or tax advice - it's simply a guide. If you need help, check with your accountant or contact HMRC directly.