Every entrepreneur should be aware of his or her legal obligations. One such obligation is to provide all employees on the payroll with a P60. This document summarises the total pay and deductions made by every employee in any given tax year.
The form P60 should be given to all employees at the end of every tax year, which begins on 6th of April and ends on 5th of April the following tax year. Employers are legally obliged to give P60s by the 31st of May. This will allow enough time to check the details before filing a tax return.
Employees need their P60s to prove how much tax they’ve paid on their salaries and make any claims, for example:
• claiming back overpaid tax
• applying for tax credits
• as proof of income if applying for a loan or a mortgage
P60s include details of earnings and deductions including National Insurance Contributions and tax. These are important elements required by employees. Failure to deliver P60s on time may lead to an investigation by HMRC.
The key to accomplish these tasks successfully and efficiently is integration. Sage One offers a secure, cloud-based system that includes VAT, payroll and accountants tools. Everything under one roof, integrated and accessible on a number of platforms, from mobile to desktop. Our helpline, email and chat support services are also available 24/7. Integration extends to bank reconciliation as well as invoicing.