Over recent years there has been a steady trend away from traditional paper payslips but HMRC has steadfastly refused to amend PAYE regulations to allow employers to move away from paper P60 End of Year Certificates.  That is about to change!

HMRC has just announced that changes to PAYE regulations will take effect from tax year 2010/11 which will allow employers to provide P60 information to their employees electronically. Thus the first P60 that could be provided electronically would be that for the year ending 5 April 2011.

This news is so hot off the press that Moorepay has not yet had an opportunity to formulate its policy but it is extremely likely that we will want to be able to offer this facility to our customers at the first opportunity.  We would very much welcome your reaction to this news to gauge what the take up might be, email us at helpdesk@moorepay.co.uk.

Why go paperless?

The transition from paper payslips to online payslips is an emotive issue – some staff really like to get their hands on their payslip as it is somehow a tangible confirmation that they have been paid.  Many companies have conducted lengthy consultations with staff to persuade them of the benefits of electronic payslips.  Feedback we receive suggests that once staff get over the hurdle of not having to grapple with those perforations which never quite come off cleanly and usually tear through the pressure sealed payslip they actually prefer the electronic version.  It is so convenient to log on to the intranet/internet at work or at home and see that all important net pay figure in the bottom right hand corner and after a short time one wonders what all the fuss was about (or at least that is the writer’s personal experience).

Will there be the same initial reluctance towards P60?  Personally I suspect not. 

Whilst logged on to HMRC’s site to complete one’s self assessment return it will be much more convenient to simply call up on the PC the electronic version of the P60, as opposed to pulling lots of paper from your  drawers and cupboards until you, eventually, find the paper P60 you threw in there five months ago! 

There is also the environmental aspects to consider – we are constantly asked to become more green and here is another opportunity to contribute.

What next?

It is likely that employers will have to consult with employees about moving to electronic P60 and wouldn’t it be a good idea to start that process when you issue the paper P60 for the current tax year?  And while you are at it why not also consider moving to electronic payslips if you have not already done so.