P60 and P45 Guide for UK Employers 2026: Everything You Need to Know

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Introduction

If you employ staff in the UK — even just one person — you’ll come across P60s and P45s. They’re two of the most important documents in the PAYE system, and getting them right is a legal obligation, not an optional extra. Yet plenty of small employers are unsure exactly who needs which form, when, and what happens if they get it wrong.

This guide explains everything UK employers need to know about P60s and P45s in 2026: what each form is, who gets it, the deadlines, what to do when someone joins or leaves, and the penalties for slipping up. It’s written for employers and business owners running their own payroll — so it’s practical, not technical.

The Difference Between a P60 and a P45 (Quickly)

It’s easy to muddle these two, so let’s clear it up first:

• A P60 is an end-of-year summary. It shows an employee’s total pay, tax, and National Insurance for the whole tax year, and goes to every employee who is still working for you at the end of the tax year.
• A P45 is a leaving certificate. It shows an employee’s pay and tax up to the date they leave, and you give it to anyone who stops working for you part-way through the year.

In short: the P60 is for people who stay; the P45 is for people who go.

The P60 Explained

What is a P60?

A P60 (End of Year Certificate) is the annual statement you give employees at the end of each tax year. The UK tax year runs from 6 April to 5 April, so the P60 covers everything from 6 April one year to 5 April the next. It shows:

• Total pay for the year
• Total tax deducted
• National Insurance contributions
• Any statutory payments (such as maternity or sick pay)
• The employee’s final tax code

Employees rely on their P60 well beyond tax: they use it to apply for mortgages, prove their income for rentals, claim tax refunds, and complete a Self Assessment return if they file one.

Who gets a P60, and when?

You must give a P60 to every employee who is on your payroll on 5 April — the last day of the tax year. This includes employees who are on maternity leave, long-term sick leave, or any other kind of absence, as long as they’re still employed.

Employees who left before 5 April do not get a P60 from you — they received a P45 when they left, which serves the same purpose for their leaving.

The deadline is firm: you must provide P60s by 31 May following the end of the tax year. For the 2025/26 tax year, that means by 31 May 2026. There’s no grace period.

How to issue P60s

If you use payroll software, it will generate P60s automatically once you’ve completed your final Full Payment Submission (FPS) for the tax year. You can then issue them:

• On paper, or
• Electronically — HMRC has permitted electronic P60s since 2016. A PDF sent by email or made available through a secure payroll portal that the employee can access and download fully satisfies your obligation. You don’t have to print and post them.

One important point that catches employers out: you do not send P60s to HMRC. They’re for your employees only — HMRC already has the underlying figures from your RTI submissions during the year.

Penalties for missing the P60 deadline

Failing to provide P60s on time can lead to a penalty of up to £300 per P60, with a further £60 per day for continued non-compliance. Given the figures come straight from your payroll records, the sensible approach is to check your final year-to-date figures are correct, then issue P60s early in May rather than leaving them to the last minute.

The P45 Explained

What is a P45?

A P45 (Details of Employee Leaving Work) is the document you give an employee when they stop working for you. It records their pay and tax from the start of the tax year up to their leaving date, so their next employer can pick up where you left off and apply the correct tax code — avoiding the employee being put on emergency tax.

The parts of a P45

A P45 comes in parts, and it helps to know where each goes — though under Real Time Information (RTI) some of this now happens electronically:

• Part 1 — you (the employer) send this to HMRC. In practice, you report the employee’s leaving date and final pay through your payroll software’s FPS, which handles this electronically.
• Part 1A — the employee keeps this for their own records.
• Parts 2 and 3 — the employee gives these to their new employer, who uses the details to set up their PAYE and apply the right tax code.

So the employee walks away with Parts 1A, 2, and 3; you’ve already told HMRC via your payroll.

When to issue a P45

You should give an employee their P45 without delay when they leave — you can’t withhold it, and you shouldn’t wait until the end of the month or the tax year. Produce it through your payroll software as part of processing their final pay.

What If a New Employee Doesn’t Have a P45?

This is common — someone starting their first job, returning from time abroad, or who has simply lost their P45. In that case, you don’t use the old “P46” form (which was withdrawn years ago). Instead, the new employee completes a Starter Checklist (HMRC’s replacement for the P46).

The Starter Checklist captures the information you need to work out a temporary tax code and set the employee up correctly on your payroll. You keep it with your records (you don’t send it to HMRC) and report the new starter through your first FPS for them. Once HMRC processes the details, they’ll issue the correct tax code if the temporary one needs adjusting.

How RTI Ties It All Together

Since Real Time Information (RTI) was introduced, employers report PAYE information to HMRC on or before each payday through a Full Payment Submission (FPS). This underpins both forms:

• P45s: when someone leaves, your FPS reports their leaving date and final figures — effectively the old “Part 1.”
• P60s: once your final FPS of the tax year is submitted, your payroll software can generate P60s from the year’s data.

This is why accuracy throughout the year matters: any errors in your RTI submissions — wrong tax codes, missed updates — will flow through to the P45s and P60s you produce, and may need correcting later.

Record-Keeping

You must keep your PAYE records — including the data behind P60s and P45s — for at least 3 years from the end of the tax year they relate to, in case HMRC needs to check them. HMRC advises employees to keep their own P60s for at least 22 months after the tax year end (and ideally longer, as mortgage lenders often ask for the last one or two years).

Related Forms Worth Knowing

• P11D and P11D(b): report taxable benefits in kind (company cars, private medical insurance, etc.) and the employer’s Class 1A NIC, due by 6 July after the tax year.
• P32: your internal record of monthly PAYE and NI liability. RTI doesn’t replace it — it’s still useful for reconciling your payments to HMRC.

FAQ

When is the P60 deadline for 2026?

You must provide P60s to all employees on your payroll as at 5 April 2026 by 31 May 2026. This applies to the 2025/26 tax year. The deadline is fixed, and late issue can attract penalties.

Do I need to send P60s to HMRC?

No. P60s are for your employees only — you don’t send copies to HMRC. HMRC already holds the figures from the Real Time Information (FPS) submissions you made during the year. Your obligation is simply to give each eligible employee their P60 by the deadline.

What do I do if a new employee has no P45?

Ask them to complete a Starter Checklist (which replaced the old P46 form). This gives you the information to set them up on payroll with an appropriate temporary tax code. You keep the checklist with your records and report the new starter through your payroll’s FPS; HMRC will confirm or correct the tax code.

Can I issue P60s and P45s electronically?

Yes. HMRC allows electronic P60s (via email or a secure payroll portal the employee can access and download). P45s are likewise typically produced digitally by payroll software. The key requirement is that the employee can genuinely access their document.

What’s the penalty for not issuing a P60 on time?

Failing to provide P60s by 31 May can result in a penalty of up to £300 per P60, plus a further £60 per day if the failure continues. It’s a straightforward obligation to meet, so it’s worth issuing them promptly.

Conclusion

P60s and P45s are routine, but they’re not optional — and the details matter. The essentials for UK employers in 2026: give a P60 by 31 May to everyone on your payroll at 5 April (but not to leavers, and not to HMRC); give a P45 immediately to anyone who leaves; and use a Starter Checklist for new joiners who don’t have a P45. Modern payroll software handles nearly all of this automatically once your Real Time Information submissions are accurate — which is the real key to getting year-end right.

If you’re running payroll manually or you’re unsure about a tricky case — a director paid irregularly, a delayed final payment, or a rehired employee — it’s well worth using proper payroll software or speaking to a payroll professional or accountant.

This article is for general information only and does not constitute tax, payroll, or legal advice. PAYE rules change and depend on your circumstances — always confirm current requirements at GOV.UK and consult a qualified accountant or payroll professional where needed.