If you took over employees for the first time recently, then congratulations are in order. It not only shows that your firm is healthy and expanding, and it also implies that you will be able to accelerate your growth rate since new employees have the capacity to make a big difference to the productivity and profitability of an enterprise in the next months and years.
But enormous responsibility lies with all the great efforts. I hope you have now acquired to handle your wage responsibilities weekly or monthly (including the need for real-time reporting). However, a further significant payroll duty (and legally needed) comes up quickly; do you have your P60 on the due date for 31 May?
What is P60?
A P60 is an annual report provided to workers after each tax year, summarising their taxable income for one year and providing a detailed description of any income tax, national insurance contributions, employee pension, and student loan repayments deducted through pay as you earn (PAYE).
How essential are P60s?
Everyone who still works for your firm at the conclusion of the tax year must receive a P60 by 31 May (workers who left your job before the end of the tax year must not be issued a P60 since they should have been awarded a P45 on their departure).
It is vital to ensure that employees get (and retain) their P60, as it is necessary to show whether they have paid or paid the amount. In case, for example, an employee claims unpaid tax, applies for tax credits, or proves his or her income while applying for an individual loan, a mortgage or rental property, a P60 will be needed.
How can I build P60s?
You must also be able to produce the required P60s for your employed after the end of the tax year if you have a bookkeeper or small company accountant for managing your monthly or weekly payroll.
You can probably add the functions needed to create P60s if you operate your payroll or accounting software in-house. For instance, Xero, KashFlow and FreeAgent may all produce P60 following the conclusion of the tax year.
If not, copies of the P60 forms from the HMRC can be ordered.
Expenditure and benefits
OK, so you have P60 ducks in a row to guarantee that you make the deadline of 31 May. Another year’s time to forget yearly payroll commitments, right?
Wrong. Remember that there is another annual payroll deadline just around the corner since you have to notify HMRC the yearly costs and benefits of your workers by 6 July and you have to pay all class 1A national insurance contributions payable on those perks by 22 July.
We know how to pay
Our team of SME accountants can administer the usual payroll process for small firms and prepare P45 forms for employees after the end of the tax year if they leave the company and create P60s for each employee.
Contact CBM accounting immediately, or obtain an online fast offer for our services utilizing our immediate accountability quotation form to discuss your payroll requirements.