From 6th April 2010, new PAYE regulations mean that HMRC will accept the use of electronic P60s (also known as eP60s).
This is great news for large employers, such as umbrella companies, that have been previously been required to issue thousands of paper based P60s to their employees at the end of each tax year.
The move has been welcomed by several industry bodies, including the Institute of Payroll Professionals (IPP), who have been campaigning for the change for some time. Speaking to Recruiter Magazine, Karen Thomson, Associate Director of Policy, Research and Strategic Visibility said that the IPP were pleased that the government had finally taken the appropriate action with regards to e60s.
According to Thomson, large scale employers will achieve significant cost savings as a result of the reduced administration required at payroll year end. Since electronic payslips and eP11ds are already commonplace, “it seems only appropriate that organisations are permitted to move on from paper to eP60s.” She added.
The amendments to the Income Tax (Pay As You Earn) Regulations can be viewed at the Office of Public Sector Information.
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