With the P60 deadline on 31st May 2026 approaching, new data shows UK searches for “P60 deadline” have risen by 256% over the past three months, highlighting growing concern among employers and employees around payroll compliance and tax documentation.
Given the spike in interest, I wanted to share some expert commentary and practical guidance from Capital on Tap, which could support any coverage you’re working on around payroll, compliance, or small business admin.
With a relatively short window between the end of the tax year and the deadline, many SMEs risk leaving P60s too late, potentially leading to errors, delays, or even penalties. HMRC fines can start at £300 and increase daily, making this a key moment for businesses to get their processes right.
On what this means for SMEs and how they can stay compliant, Rebecca Alford, Chief Financial Officer at Capital on Tap, says:
“With the P60 deadline on 31 May approaching, SMEs have a limited window after the end of the tax year to finalise payroll and issue documents correctly. It’s not something you can prepare in advance, which is why having clear payroll processes in place is so important.
There are real consequences for missing the deadline, with HMRC penalties starting at £300 and increasing by £60 per day for every day P60s remain outstanding. In practice, the businesses that stay compliant are those that keep payroll organised year-round, through maintaining accurate records, using reliable systems, and making sure employee information is up to date.
For smaller businesses, there are also simple tools available to make this easier. HMRC offers free payroll software for businesses with fewer than 10 employees, which can help calculate tax and National Insurance and generate documents like P60s without the need for additional investment.
Taking a bit of time to get this right upfront can save businesses from unnecessary stress, penalties, and follow-up admin later on.”
