P60s should go ‘electronic’
Employers should be allowed to issue their staff with P60s electronically.
The call has come from the Institute of Payroll Professionals (IPP) which wants HM Revenue and Customs (HMRC) to extend the online PAYE rules to include P60 forms.
A survey of IPP members revealed that nine out of ten back a change in the regulations.
Karen Thomson, associate director of policy at the IPP, said: “As many of the returns that payroll must submit to HMRC are already electronic, including P14s, there is no reason why P60s should not be issued in the same way. A lot of employers already use online facilities for things such as e-payslips, so expanding this to P60s makes a lot of sense.”
The IPP believes there are a number of advantages to electronic P60s, including the time saved on printing and posting, and greater safeguards against fraud.
A P60 is a summary of an employee’s pay and the tax that has been deducted from it in the tax year. Employees need to keep copies of their P60s as a record at the end of every tax year. The forms can be used to complete self-assessment tax returns, claim back any overpaid tax, apply for tax credits and offer proof of income.