As the tax year comes to a close, one of the most important payroll responsibilities for UK employers is issuing P60 forms to employees. While it may seem like a routine administrative task, the deadline of 31 May 2026 is a legal requirement and one that should not be overlooked.

A P60 is far more than just a summary document. It represents the official record of an employee’s total pay, Income Tax, and National Insurance contributions for the entire 2025–26 tax year. For employees, it plays a critical role in everything from completing Self Assessment returns to applying for mortgages, loans, or government benefits.

From an employer’s perspective, correctly issuing P60s is a key compliance obligation under HMRC regulations.

Why the P60 Deadline Matters

Every employer must provide a P60 to all employees who were still employed on 5 April 2026, regardless of how much they earned or whether they worked full‑time or part‑time.

The deadline of 31 May 2026 is fixed and missing it can lead to:

• HMRC penalties and compliance action
• Increased employee queries and complaints
• Delays in employees accessing financial services or tax refunds
• Reputational damage as an employer

Unlike some payroll tasks, there is no grace period. Employers are expected to have accurate records ready and P60s distributed in good time.

What Information Does a P60 Include?

A P60 gives employees a complete snapshot of their financial year. It includes:

• Total gross pay
• Total tax paid through PAYE
• National Insurance contributions
• Student loan deductions (where applicable)
• Statutory payments such as maternity or sick pay

Because these figures are taken directly from payroll records and RTI submissions, accuracy is essential. Even small discrepancies can cause confusion or require correction later.

Who Should Receive a P60?

It’s important to understand that not every worker gets a P60.

Employers must issue a P60 only to employees who:

• Were employed on the final day of the tax year (5 April 2026)
• Are included in payroll records for that period

Employees who left before this date will instead have received a P45, which serves a similar purpose for leavers.

Common Mistakes Employers Make

Despite being a standard payroll task, issuing P60s is an area where many businesses still make avoidable mistakes. From years of payroll experience, the most common issues include:

• Missing employees who were still active at year end
• Delays caused by incomplete or inaccurate payroll data
• Errors in reported earnings or deductions
• Failure to reconcile RTI submissions with final payroll totals
• Relying on manual processes or outdated systems

These are rarely intentional errors, but they can still lead to compliance risks and additional administrative work.

Digital vs Paper P60s

Employers can issue P60s either:

• Digitally (via secure payroll portals or email), or
• In paper format

However, if issuing electronically, employers must ensure employees have easy and secure access to their documents.

Increasingly, digital delivery is becoming the standard, as it provides:

• Faster distribution
• Secure storage
• Reduced administrative workload

How Payroll Accuracy Impacts P60s

P60s are only as accurate as the payroll data behind them.

Because the figures are drawn from Real Time Information (RTI) submissions, any errors made during the year, such as incorrect tax deductions, missed updates, or inconsistencies  will appear in the final P60.

This is why the end of the tax year is a crucial time to:

• Review payroll records
• Reconcile submissions with HMRC data
• Correct any discrepancies before issuing P60s

Why This Matters More in 2026

With ongoing changes across payroll, tax, and employment law, the expectations on employers continue to increase.

HMRC’s systems are more advanced than ever, meaning:

• Discrepancies are easier to detect
• Employee records are cross‑checked more frequently
• Errors are more likely to result in follow‑up action

For businesses, this means that even routine tasks like issuing P60s must be handled carefully and professionally.

How PayCheck Supports Employers

At PayCheck, we understand that year‑end payroll responsibilities can feel time‑pressured especially alongside day‑to‑day business operations.

With over 30 years of payroll expertise, we help employers:

• Ensure payroll data is complete and accurate before year end
• Manage RTI submissions and reconciliations
• Generate and distribute P60s correctly and on time
• Reduce administrative burden and compliance risk

By having the right processes and support in place, businesses can meet the 31 May deadline confidently, without last‑minute stress.

Issuing P60s may seem like a simple task, but it plays an essential role in both employee experience and employer compliance.

Getting it right means:

• Employees have the information they need
• HMRC records remain accurate
• Your business stays compliant

As the 31 May 2026 deadline approaches, now is the time to ensure everything is in order.

• Check your payroll data
• Confirm all employees are accounted for
• Issue P60s on time

Because in payroll, it’s often the small details at year end that make the biggest difference.

Need help managing your payroll or year‑end compliance?

Speak to the PayCheck team today and ensure everything is accurate, on time, and fully compliant.