I am advised by Revenue that P60 Forms are issued by employers to their employees at the end of each tax year. The P60 is a statement of the employee’s earnings and statutory deductions for that year and is an important part of the current PAYE system.
Under the current PAYE system, pay, tax and USC deducted information from the P60 is available to employees through Revenue’s online PAYE Services if they are registered for ‘MyAccount’ and they can also receive any end of year ‘Balancing Statements’ electronically. At this point nearly 650,000 PAYE taxpayers have expressed a preference to receive electronic output in this manner rather than paper copies and I am aware that this figure is continuing to increase. Alternatively, PAYE taxpayers can submit a paper copy of their P60 to Revenue and have a hard-copy ‘Balancing Statement’ posted to them should they wish to do so. These arrangements will remain in place for tax years up to and including 2018.
With effect from 1 January 2019 the administration of PAYE is undergoing significant change with the move to real-time reporting under the PAYE Modernisation programme. These changes will bring improved accuracy and transparency for all stakeholders, including employers, employees and Revenue, while also significantly streamlining the entire administration process. The streamlining will include the abolition of the current employer reporting obligations via P30, P35, P45, P46 and P60 forms.
As a result, employers will no longer be required to provide their employees with a P60 from the 2019 tax year onwards. Instead, Revenue will make an automatic End of Year Statement available to all employees. The first End of Year Statement will be available in early 2020 (in respect of the 2019 tax year) and will detail the employee’s pay and deductions based on employer submissions for the year. This will include salary, any taxable Department of Employment Affairs and Social Protection payments and any other income returned by the person, as well as applicable tax credits and reliefs. The End of Year Statement will be available online through the PAYE Services/MyAccount service in the same manner as the current system. In circumstances where a person is unable to access Revenue’s online services for whatever reason they will be able to request a paper copy of their End of Year Statement by contacting Revenue directly.