Currently, epayslip systems can replace traditional paper based payslips. Each employee would have secure access to a website containing electronic versions of their payslip. However, at year end an employee still has to be provided with a paper version of the form P60.
This does seem at odds with HMRC's drive toward everything electronic, particularly when HMRC allows other year end information to be submitted, such as P14's, to them electronically.
There are provisions where the final payslip of the year can be amended to substitute for the P60 itself. However, a change in legislation to allow electronic distribution of forms P60's would be a huge step forward
Karen Thomson, associate Director of Policy at the IPP, in a recent publication said
"As many of the returns that payroll must submit to HMRC are already electronic, including P14s, there is no reason why P60s should not be issued in the same way. A lot of employers already use online facilities for things such as e-payslips, so expanding this to P60s makes a lot of sense."