Year end payroll chores
It is not long until the current 2020-21 tax year comes to an end and there are a number of year end payroll chores that must be completed. This includes sending a final PAYE submission for the tax year. The last Full Payment Submission (FPS) needs to be submitted no later than the last payday for your employees of the 2020-21 tax year.
It is also important that employers remember to provide employees with a copy of their P60 form by 31 May 2021. A P60 must be given to all employees that are on the payroll on the last day of the tax year – 5 April 2021. The P60 is a statement issued to employees after the end of each tax year that shows the amount of tax they have paid on their salary. Employers can provide the P60 form on paper or electronically. Employees should ensure they keep their P60s in a safe place as it is an important record of the amount of tax paid.
In addition, a P60 is required in order that an employee can prove how much tax they have paid on their salary, for example:
- to claim back overpaid tax;
- to apply for tax credits;
- as proof of your income if you apply for a loan or a mortgage.
Employees who have left their employment during the tax year do not receive a P60 from their employer, as the same information will be on their P45.
The deadline for reporting any Class 1A National Insurance contributions and submitting P11D and P11FD(b) forms to HMRC for the tax year ending 5 April 2021 is 6 July 2021.
Please get in touch with your usual Farnell Clarke contact who can help you prepare for the upcoming deadlines. Alternatively, email email@example.com.