P45 vs P60 vs P11D: What UK employers need to know

Running payroll in the UK means dealing with forms. Lots of them. And unless you know them like the back of your hand, it’s easy to mix up what’s what.

The P45, P60, and P11D all serve different purposes. One’s for when someone leaves, one’s for year-end, and one’s for reporting benefits like company cars and private healthcare. Each has its own rules, its own deadline, and its own consequences if you make a dog's dinner out of it.

In this guide, we explain exactly what each form is, when you need to issue it, who it applies to, and how to stay compliant.

This article is accurate for the 25/26 tax year. Tax rules, deadlines, and payroll obligations can change. Always check the latest guidance from HMRC.

What’s a P45?

A P45 is what you give an employee when they leave your business. It applies whether they quit, were let go, or just wandered off after probation and never came back.

It shows how much they earned and how much tax they’ve paid so far that tax year. It also includes their tax code and National Insurance number. A P45 ensures their next employer doesn’t start them on the wrong foot with HM Revenue and Customs (HMRC).

When do you issue it?

Straight away. You should issue the P45 as soon as you process the employee’s final pay. Don’t drag your feet as they’ll need it for their next job.

What do you do with it?

The P45 comes in four parts:

• Part 1 goes to HMRC (good payroll software usually sends this off automatically).
• Part 1A goes to the employee for their own records.
• Parts 2 and 3 also go to the employee, so they can hand them to their next employer.

You don’t keep any of the original copies yourself. But it’s smart to save a digital version for your records just in case someone kicks off later or HMRC asks for it.

What do employees use it for?

• Giving to their next employer so they don’t get taxed like a lottery winner
• Claiming back tax if they’re not working straight away
• Proving income or employment dates if needed

Basically, if you don’t give them their P45, they’re stuck. And if you make a hash of it, it could land them (and you) in a pickle with HMRC.

What’s a P60?

A P60 is your year-end wrap-up. You give it to employees who are still on your books at the end of the tax year (5 April). It shows what they earned and what you’ve deducted. For instance, things like tax, National Insurance, student loans, and pensions.

It’s not a payslip, and it’s not optional. HMRC expects it. So do your staff.

When do you issue it?

By 31 May, every year. That’s the deadline, and there's no wiggle room. If the employee was on your payroll on 5 April, they get a P60.

What do you do with it?

You give each employee a copy of their P60, either as a printed document or digitally.

If you use modern payroll software, it will usually generate these for you. So, there’s no need to fill anything in by hand. Whatever the method, you just need to make sure the figures are right and your employees receive it on time.

You should keep a copy for at least three years. HMRC might ask to see it down the line.

What do employees use it for?

• Proving income for loans, mortgages, or rentals
• Checking how much tax they’ve paid
• Claiming back overpaid tax
• Updating their personal tax account
• Filling out self-assessment tax returns (if needed)
• Sorting student loan repayments or tax credits

If a P60 is wrong, late, or missing altogether, you’re creating problems for your employees and for yourself.

What’s a P11D?

A P11D is what you use to report benefits in kind. This includes the extra stuff your employees get that isn’t part of their regular wages, but still counts as taxable. For instance, company cars, private medical cover, season ticket loans, or gym memberships.

HMRC uses the P11D to adjust the employee’s tax code, so they’re taxed properly for the value of those benefits.

When do you issue it?

You need to submit the P11D and P11D(b) forms to HMRC by 6 July, after the end of the tax year. As of now, these forms must be submitted online using compliant payroll software, unless you're officially exempt from digital reporting. Paper submissions are no longer accepted for most employers.

Looking ahead, from 6 April 2027, the way benefits-in-kind (BiKs) are reported will change. Employers will be required to report and tax most BiKs through payroll in real time, rather than submitting a P11D at year-end. This shift is designed to simplify reporting, improve accuracy, and help HMRC collect tax more efficiently. 

If you’re not already using payroll software that can handle digital submissions and real-time benefit reporting, now’s the time to start preparing.

What do you do with it?

If you’ve provided any benefits in kind during the tax year, you’ll need to:

• Submit a P11D for each affected employee
• Give each of them a copy of their P11D
• Submit a P11D(b) if you owe Class 1A National Insurance contributions (NICs)
• Pay the NICs to HMRC by the deadline (22 July or 19 July if you're paying by post)

If you’re using payroll software to track benefits throughout the year, some of this may happen automatically. But it’s still your job to make sure it’s all accurate and submitted on time.

It's important to note that not every employer needs to send a P11D. It comes down to how you’ve handled the benefits.

If you’ve taxed the benefit through payroll (called payrolling), then you don’t need to send a P11D for that benefit. But here’s the catch: you must have registered with HMRC before the tax year started. If you didn’t register, or if you’re not taxing the benefit through payroll? Then yes, you’ll need to submit a P11D for each employee who got a benefit.

And no matter how you report the benefits, if you owe Class 1A NICs, you still need to submit a P11D(b) and pay it by 22 July.

What do employees use it for?

• Understanding why their tax code changed
• Checking the value of non-cash perks they received
• Keeping a record of what’s been reported to HMRC
• Flagging issues if something’s gone wrong

If you don’t give them a copy, or it’s full of mistakes, they’ll probably be left feeling confused when their payslip changes or their tax bill doesn’t make sense.

What kind of benefits trigger a P11D?

Some examples of benefits that trigger a P11D are:

• Company cars and fuel
• Private medical or dental cover
• Cheap or interest-free loans over £10,000
• Non-cash bonuses or vouchers
• Gym memberships
• Assets you’ve given employees to keep (like a laptop or phone)

Basically, if it’s not pay but still has a monetary value, there's a good chance it belongs on a P11D.

P45 vs P60 vs P11D: Key differences at a glance

This table lays out the key differences between each form, side-by-side, so you can see what’s what at a glance:

Employer responsibilities: What to do and when

Getting payroll right goes far beyond just paying people on time. You’ve also got to stay on top of forms, deadlines, and HMRC rules. Here’s what every UK employer needs to get right, and how good payroll and HR software can make it a whole lot easier:

Keep accurate payroll records

If your records are messy, your forms will probably be messy too. You need to keep clear records of what each employee earned, what was deducted, and what benefits they received. Otherwise you’ll be scrambling when it’s time to send out P60s or report benefits.

Smart payroll software can track everything automatically as you go. This means that when year-end rolls around, the info’s already there and there's no need to dig through spreadsheets or old payslips.

Issue forms on time (with a timeline or checklist) 

As mentioned, P45s should go out as soon as someone leaves. P60s are due by 31 May. P11Ds (and the P11D(b)) need to be in by 6 July, and Class 1A NICs must be paid by 22 July.

If you’re doing this manually, you’ll need a good calendar and strong nerves. But with modern payroll software, you can get reminders, auto-generated forms, and even digital delivery. The result? You stay on track without having to think too hard about it.

Submit to HMRC where required

Some forms go to employees, some go to HMRC, and some go to both. A missed submission can lead to fines. So, don’t assume someone else has done it. At the end of the day, if it’s your payroll, it’s your problem.

Good payroll software can handle HMRC submissions automatically in the background. This can include sending Part 1 of the P45 and the full P11D report. One less thing for you to worry about!

Communicate clearly with employees 

Tax documents can be confusing. This is true even for people who’ve been employed for years. Let your team know what each form is for, when they’ll get it, and where to go if they have questions.

Modern HR software helps here, especially if it includes an employee self-service portal. Staff can download their own P60, check payslips, and view benefit summaries. And all without chasing you or your HR team.

Keep things flexible with Rippling

Whether you’ve got a handful of employees or a whole team, staying on top of payroll forms shouldn’t take over. That’s where Rippling comes in.

Rippling’s UK payroll software automatically handles everything from pay runs to P45s, P60s, and benefit tracking. It generates forms, files the right bits with HMRC, and makes sure your employees can access what they need.

If you offer perks like private healthcare or company cars, Rippling tracks those too. It helps you stay compliant with P11D rules, calculates Class 1A NICs, and even preps your P11D(b). The best part? It does it all in the background, while you get on with more important things.

And it doesn’t stop at payroll. Rippling connects your HR, Payroll, IT, and Spend in one platform, all built on a shared source of truth. So, when someone changes roles or gets a raise, that update flows straight through to their payslip, benefits, and tax forms. No double-handling and no fiddly updates.

UK payroll forms FAQs

Do I need to give a P45 to a casual worker?

Yes. If they were on your payroll and paid through Pay As You Earn (PAYE), then they must receive a P45 when they leave. It doesn’t matter if they only worked a few shifts. As mentioned, a P45 helps make sure their new employer uses the correct tax code, so their income tax doesn’t get mucked up.

What happens if I miss a P11D deadline?

If you miss the P11D(b) deadline, HMRC can fine you £100 for every 50 employees. And that’s for each month or part month it’s late. If you’re also late paying Class 1A National Insurance contributions, you could get hit with extra penalties and interest on top.

As for the P11D itself, there’s no fixed fine. But you’re still at risk. HMRC might launch a compliance check. This is especially true if the delay means someone ends up on the wrong tax code or paying the wrong amount of income tax.

Bottom line: get it in on time and keep your tax records straight.

Can I send P60s electronically?

Yes, you can distribute P60s electronically. This is provided that your employees agree to receive them in this format. Many modern payroll systems facilitate this. They can enable employees to have easy access to their records, which detail their income tax and National Insurance deductions for the year.

What’s the penalty for getting a P11D wrong?

If you mess up a P11D or P11D(b), HMRC won’t necessarily fine you straight away. It depends on why the mistake happened.

If it’s an honest mistake and you’ve taken reasonable care, you probably won’t be penalised. But if HMRC thinks you’ve been careless, you could be fined up to 30% of the tax they’ve lost. Deliberately giving the wrong info? That can jump to 70%. And if you’ve tried to hide it, the penalty can go all the way up to 100%.

The best bet? Double-check the figures before you submit. This is especially important if you’re not using software that pulls the figures for you.

Do directors get a P60?

Yes, directors have a right to a P60 if they're on the company's payroll at the end of the tax year (5 April). The P60 summarises their total pay and deductions. It includes income tax and National Insurance contributions, and is essential for their own tax records and any financial applications.

This blog is based on information available to Rippling as of May 13, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.