Key forms to know post-tax year: A quick reminder

As we have just passed the end of the tax year, it's a good time to remind ourselves of some key forms that are essential for both employers and employees. Understanding these forms can help ensure compliance with HM Revenue & Customs (HMRC) and make the financial year-end process smoother.

P11D: Reporting benefits in kind

A P11D form is used by employers to report any benefits in kind that employees have received over the tax year (6th April to 5th April of the following year). Benefits in kind are perks provided by the employer that are not included in the employee's salary but are subject to tax. Examples include company cars, private medical insurance, and interest-free loans. Employers must submit the P11D to HMRC by 6th July following the end of the tax year.

P45: When an employee leaves

A P45 is issued to an employee when they leave a job. It details how much they have earned and how much tax they have paid during their employment. The P45 is divided into four parts: Part 1 is sent to HMRC, Part 1A is given to the employee for their records, and Parts 2 and 3 are given to the new employer or Jobcentre Plus if the employee is not working.

P60: End of year summary

A P60 is provided to each employee at the end of the tax year. It summarises the total pay and deductions for the year, including income tax and National Insurance contributions. This form is crucial for employees as it serves as proof of income and tax paid, which can be needed for various purposes such as applying for loans or verifying income.

Why These Forms Matter

• Compliance: Ensuring these forms are correctly completed and submitted helps maintain compliance with HMRC regulations.

• Financial Accuracy: Accurate reporting helps avoid discrepancies and potential penalties.

• Employee Records: These forms provide employees with essential records of their earnings and tax payments.

  
  

Important Deadlines

• P11D: Must be submitted to HMRC by 6th July following the end of the tax year.

• P45: Issued immediately when an employee leaves a job.

• P60: Provided to employees by 31st May following the end of the tax year.

  
  

Conclusion

Staying on top of these key forms is essential for smooth financial management and compliance. If you have any questions or need assistance with these forms, feel free to reach out to us at BlueFox Accounting. We're here to help!