P60 Question - Quite Urgent please help!

toonielass · PayPerShop Newbie Joined: 24 Apr 2008 Posts: 6

Hi im new to payroll and have a query i was hoping someone could help me with.

I have had an employee on the phone asking for a copy of his P60. When i have checked his last day of employment was the 4th April 2008 which was a Friday. Should he have had a p60? I have checked the year end file and the copies of the p60s are only the ones still employed by us. Is this correct? Im really worried ive done something wrong on the year end.

Also if this is correct, where does this leave him? Where does he get a copy of his p60 from?

Any help would be much appreciated

thank you Smile

Neiltonks · Posted: Fri Jun 27, 2008 4:48 pm Post subject: Last payment?

When was the person paid his final payment? I ask because this is a case where applying the P60 rule strictly can lead to an anomoly.

Take an employee who leaves on Friday 4th April but whose payroll is a week in arrears. The final payment will therefore be made on Friday the 11th, week 1 of the 2008/9 tax year. Most payroll offices would, in this situation, issue the P45 with the final payment and it would therefore contain just the values from the one week which was paid in the 2008/9 tax year.

However the rule for P60s says to give one to everyone still employed by you on the 5th of April. In this case, the employee wasn't employed on that date and would not get a P60. They therefore never get anything stating their earnings in the 2007/8 tax year. Many payroll offices give a P60 anyway to people in this situation, even though it's strictly against the rules.

Neil.

Ian Whyteside · Posted: Fri Jun 27, 2008 4:49 pm Post subject: P60

Hi there,

If this persons employment contract and last day of service were, as you say, 4 April then a P45 would have been issued and he is therefore not entitled to a P60.

HMRC make it very clear that only those still in employment on 5 april get a P60, sounds rough but thems the rules!

Ian Whyteside

toonielass · PayPerShop Newbie Joined: 24 Apr 2008 Posts: 6

Neiltonks,

What you are saying is what the situation was. His last day of employment was 4th April 2008 but his wages were paid on 11th April 2008. He received his P45 with his last pay packet and his P45 showed his wage for the 1st week of the new tax year.

So in your opinion this is correct and he shouldnt have received a p60?

Thanks

Ian Whyteside · Posted: Mon Jun 30, 2008 10:24 am Post subject: P60

Yes, you have described the very situation where the rules are a catch 22. The employment contract terminated before the 5th so no P60 but payment is made after 5th so no P45 for the old tax year.

This happens because HMRC assumes that when someone leaves the employer always issues the final payment, all documentation and the P45 on that final day! And of course all payroll offices can do this easily, can't they?

They probably do so in la la land, but here on planet earth its a bit different.

What I suggest is that you give the ex employee a statement of earnings on company headed paper and sign it as being a true statement of the earnings in the tax year.

This way the person gets some sort of official document which ought to be acceptable to various agencies and you dont get accused of issuing eroneous certificates.

Ian Whyteside