Introduction

Self assessment is a system for people who get tax returns. Employers have an obligation to provide their employees with certain information that they may need to fill in their self assessment tax return form.
You must:
- provide a P60 form to each employee by 31 May after the end of the tax year
- calculate the cash-equivalent value of any benefits in kind given and provide details - using form P11D - to relevant employees
- provide the same details on form P11D to HM Revenue & Customs (HMRC) by 6 July after the end of the tax year
- ensure that a completed P45 form is given to employees leaving your employ to retain for their own records
This guide explains how you can fulfil these obligations. It also tells you how to keep employees informed about the forms they receive, and what should be retained for self assessment purposes.

P60 - end of year certificate

A P60 form is the end of year certificate of pay and tax deducted under PAYE (Pay As You Earn). It shows an employee's total amount of pay for income tax purposes, along with how much has been deducted in tax and National Insurance over the tax year. By 31 May after the end of the tax year, you must give a P60 form to each employee who was working for you at 5 April for that year, and for whom you have completed a form P11 or equivalent record. You retain the employer's copies for your records. Give only one P60 form to an employee, even if that employee has had more than one period of employment with you in the tax year. If an employee asks for another copy, you may issue a duplicate. Any duplicate must be clearly marked with the word 'duplicate'. It is good practice to remind your employees that they need to hold onto their P60 for self assessment purposes. You may find it helpful to reinforce this message by incorporating the "keep it" logo in your notices to employees.

Calculate benefits in kind

As an employer, you have to supply your employees with details of their expenses and benefits in kind, specifically the cash-equivalent value of them. Many employers find it best to note these details on one sheet of paper. This makes it easier for employees to see exactly what they have received, and to use the information on their self assessment tax return.

P11D - expenses and benefits return

Keeping the right records is essential. It makes it much easier to manage your business and complete your tax returns. It's also a legal requirement. Everyone must keep records of their income (and any capital gains) for at least 22 months after the end of the tax year. If you're in business and are self-employed as a sole trader or a partner you must keep the records for at least five years and ten months after the end of the tax year. The records you need to keep depend on your circumstances. Make sure you keep enough information to back up what you say on your tax return.
The P11D is used to report the cash-equivalent value of any expenses or benefits provided by you to each "relevant" employee during the tax year. A relevant employee is one that:
- has benefits provided to them
- earns an income paid at a rate of £8,500 or over per year, including the value of the benefits - examples of this include a company car, private medical insurance and interest-free loans
You are required to provide HM Revenue & Customs (HMRC) with completed P11Ds for each relevant employee, and to give a copy of this, or of the information shown on the P11D, to each such employee by 6 July each year. In some cases businesses may be eligible for a dispensation relieving them from the obligation of providing P11Ds. Businesses will need to convince their tax inspector that no tax would be payable on employees' expenses You can fill in form P11D using the PAYE Online for Employers service.

P45 - details of an employee leaving work

When an employee leaves your employment, you are obliged to provide them with a P45 form. A P45 gives the details of an employee's pay and the tax they have paid in the current tax year. There are four parts to a P45. Part 1 has to be sent to the tax office you deal with as an employer. The other three parts are given to the employee. They should retain part 1A for their own records and give parts 2 and 3 to their new employer.

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