P45: the leaving certificate
When someone leaves, your payroll software produces a P45 showing their tax code, taxable pay and tax deducted for the year to date. Part 1 goes to HMRC automatically via your FPS leaver flag; parts 1A, 2 and 3 go to the employee, who keeps 1A and hands the rest to their next employer so the right tax code carries on. Issue it promptly after the final pay run: delayed P45s cause emergency tax at the next job and generate ill will you do not need. There is no legal duplicate P45, so encourage leavers not to lose it; a statement of earnings can be provided instead.
P60: the annual summary
The P60 is the end of year certificate for everyone employed by you on 5 April, due to them by 31 May. It shows total pay, tax, National Insurance and statutory payments for the year, and employees need it for mortgage applications, tax refund claims and Self Assessment. Leavers during the year do not get a P60, their P45 covers them. Failing to issue P60s on time can attract penalties of £300 per employee plus daily amounts, though HMRC usually chases compliance first.
P11D: benefits in kind, for now
The P11D reports taxable benefits provided to each employee, company cars, private medical insurance, interest free loans over £10,000, gym memberships and the rest, by 6 July after the tax year. The companion P11D(b) declares the employer's Class 1A National Insurance at 15% of the total benefit value, payable by 22 July electronically. Late P11D(b)s cost £100 per 50 employees per month. Since 2023 filing must be online; paper forms are rejected.
The 2027 payrolling revolution
From 6 April 2027, payrolling becomes mandatory for company cars, car and van fuel, and employer provided medical cover, with most remaining benefits following from April 2028. Benefit values will flow through the FPS each pay period and Class 1A NI will be paid in real time monthly rather than once each July, a genuine cash flow change. Employment related loans and accommodation stay outside mandatory payrolling and keep a P11D style return. If you provide benefits, plan the transition during 2026/27: registering to payroll voluntarily now is the gentlest way in. Our payrolling benefits guide covers the detail.
Quick reference calendar
Leaver: P45 with the final payslip. 31 May: P60s to all staff employed at 5 April. 6 July: P11D and P11D(b) filed and copies to employees. 22 July: Class 1A NI paid electronically. All 4 sit inside the wider payroll year covered in our deadlines and penalties guide.
Where employers slip up
The recurring failures are P45s issued weeks late, P60s forgotten for staff on nil pay months, benefits provided but never reported at all, and Class 1A paid against the wrong reference so it looks unpaid. Each is avoidable with a simple checklist, or by handing the cycle to our fixed fee payroll service, which produces every form on time as standard.
Frequently asked questions
What is a P45 and when must it be issued?
A P45 shows an employee's tax code and year to date pay and tax when they leave. It must be provided without unreasonable delay after the final pay run, and the leaver details go to HMRC on your FPS.
When is the P60 deadline?
31 May. Every employee still employed on 5 April must receive a P60 for that tax year, electronically or on paper.
Are P11Ds being abolished?
Largely, yes. From April 2027 company cars, fuel and medical benefits must be payrolled, with most other benefits following in April 2028. Only employer loans and accommodation can stay on a P11D style return after the transition.