Payroll Year End

It’s that time of year again. 

As we near the end of the tax year there are several requirements that you must do as an employer. 

And so, we’ve pulled it all into a handy checklist for you. 

1. Submit your final FPS (Full Payment Submission) 

This must be submitted on or before the last payday of the tax year. 

This ensures HMRC has accurate records of what you’ve paid employees and deducted for tax and National Insurance in the year. 

Tip – do a quick review and make sure all employees look correct. 

2. Process any year end adjustments 

• Are there any adjustments you need to make? 

• Are bonuses, commissions, and deductions accurately recorded? 

• Have all new employees been correctly added to the system? 

Tip – If you spot errors after submission, you may need to send an Earlier Year Update (EYU) or amend via your payroll software 

3. Provide Employees with a P60 

The deadline for this is 31st May. IT is a legal requirement to provide this to each employee, it shows them their total pay and deductions for the year. 

Tip – if you use software it should generate these automatically for you, and make it easy for you to distribute. 

4. Review Employee Benefits & Expenses 

• Are you reporting taxable benefits through payroll of via a P11D submission? 

• Have you update employee benefit schemes for the new tax year? 

Tip – make sure your are optimising payroll by ensuring benefits are structured in a tax efficient way 

5. Prepare for the new tax year 

• Update software with any new payroll codes 

• Check for changes in national minimum wage and pension contributions 

• Budget for payroll tax liabilities in the year 

 Tip - check your software correctly reflects HMRC tax thresholds for the new year

Payroll year end doesn’t have to be a headache. And if you need helpbook a callwith us today.