03 Jun Missed the PAYE deadline? Here’s how to get back on track
This year’s PAYE deadline for employers with payroll was Friday 31 May.
So, if you’re reading this and have yet to get round to it, you’re probably a little behind. Every year hundreds of people miss such deadlines, so what happens when a deadline is missed, and what can be done to get things back on track?
1. Understand what a P60 is for
If you don’t understand what a P60 is for, it’s probably worth learning. This way, you’ll be far less likely to miss another deadline. A P60 is an official document that summarises an employee’s annual pay from the previous twelve months, as well as things such as National Insurance contributions, total tax payments, and other things such as maternity pay.
2. Who needs a P60?
Every employee who has been on your payroll within the last 12 months needs to be given a P60 from you. And, if you run a limited company or if you take a wage from yourself, you will also need to give yourself a P60. This may seem a little redundant, but it has to be done.
3. If I miss the deadline, will there be fines involved?
The quick answer here is ‘not necessarily’. However, if you have failed to hand out P60s by the deadline, you must ensure that you get them sorted as soon as possible. The longer you leave the P60s outstanding, the more likely it is that you will end up being fined.
Such fines can be pretty hefty. HMRC can issue penalties of £300 should you issue P60s late, and can subsequently add an additional £60 per day for every day until the P60s are sorted. However, fines are not automatic; if you have a genuine reason for the delay, it is far less likely you will be burdened with a hefty penalty.
4. What happens if I’ve made a mistake?
If you realise that you’ve made a mistake with regard to P60s, you are able to amend the process. If this is the case, you need to make sure that any updated P60 is marked as ‘replacement’, and you must also ensure that the relevant employee(s) gets a letter informing them of what is going on, and how they will be affected.
If you’re still unsure about what steps you need to take, then please get in touch. We’re experts in small business accountancy and PAYE.