Lesson One: Forms P60, P45, P11D

P60

At the end of each tax year and before the 31st May you must provide to your employees a P60 Certificate. This is a form that explains how much your employee has earned over the tax year (which runs from 6 April to 5 April the following year). It also includes how much they’ve paid in National Insurance contributions and Pay As You Earn (PAYE) income tax This form is useful as proof of earnings for benefits and tax credits, it also provides a great aid when completing a self-assessment tax return. Remember you may be fined if you don’t provide this to your employees by 31st May each year. Remember our clients receive P60 copies, in good time, for their employees each year as part of our payroll service.


P45

The P45 provides a new employer with details of how much taxable salary an employee has paid over the course of the current tax year, along with how much has been deducted, and the tax code at the time of leaving their last job. Without your P45, an employer will not be able to make sure there new starter is assigned on the correct tax code. This means they could end up paying more tax or be put on an emergency tax code. Although this money can be reclaimed by contacting HMRC, no one purposefully wants additional admin tasks – especially when they can be so easily avoided, so get that P45 to us straight away.


P11D

The P11D is a tax form used in the UK to report on ‘benefits in kind’ which employees or directors receive from their employer. These are generally added extras, expenses or ‘perks’, separate from the employee’s salary or wages, and could include things like a company car or private healthcare cover.

Once submitted, the form helps the HMRC calculate the total amount of tax and National Insurance an employee will have to pay on their salary annually. You might want to give a copy of the P11D to your employees, whilst you don’t have to do this, you must tell them how much each benefit is worth. When we complete the P11D forms on your behalf, we provide all employees with a copy. Hassle free.

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