HMRC to withdraw P60 and P45 stationery

28 February 2020

As part of its digitisation of communications project, HMRC has announced that it intends to withdraw P60 and P45 stationery from tax year 2020-2021 onwards.

Employers are urged to order any P60 or P45 paper now, as HMRC hopes that the bulk of requests will be made in March and April, but will still honour requests for P60s made in May and June. The stance on P45s is slightly different as, unlike P60s, they don’t have a specific shelf life so P45 stationery will be withdrawn indefinitely in April.

HMRC will be writing to smaller employers who make regular P60 and P45 orders to advise them of the changes, so if this is applicable to you, please expect to receive formal notification shortly. The resounding message is that most payroll software has the functionality to print P60s and P45s on plain paper, so the move shouldn’t have a significant impact on a large number of payroll departments. In fact, it should be applauded, as the changes signify a move towards a more environmentally friendly HMRC.

It has been confirmed that HMRC’s Basic PAYE Tools (BPT) also offers the option to print P60s and P45s for the small companies that utilise it.

HMRC will still work alongside employers who have an agreement in place that means that they are exempt from online payroll reporting and Real Time Information (RTI). They will still be able to continue to report their payrolls on paper.

CIPP comment

The CIPP is relieved that HMRC will continue to offer P60 stationery to employers in relation to the current tax year. Previous communications seemed to suggest that the document would be withdrawn from April, with no further distribution for requests made in May and June. HMRC’s recent confirmation that they continue to supply P60 stationery to employers who make requests in May and June is extremely welcome, as this gives employers a whole 12 months to source another provider, should they still require the paper to print P60s at the end of the tax year 2020-21.

 


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