Payroll Year End Checklist: What Employers Need to Do
As an employer running payroll, it’s essential to complete several tasks at the payroll year end. You must report to HM Revenue and Customs (HMRC) on the previous tax year, which ends on April 5, and prepare for the new tax year starting April 6. Here’s a clear checklist to help you stay compliant and organised.
1. Send Your Final Payroll Report
First, submit your final Full Payment Submission (FPS) before your employees’ last payday of the tax year. For instance, if the last payday falls on March 28, submit your final FPS on or before that date. Additionally, if applicable, submit an Employer Payment Summary (EPS). Don’t forget to complete the End of Year Questions and Declarations to close out the tax year properly.
2. Correct Any Payroll Information Errors Promptly
If you discover mistakes in your FPS, act quickly. You have until April 19 after submitting your FPS to resubmit corrected figures. However, after April 20, you must send an Earlier Year Update (EYU) to amend any errors. This process ensures your payroll records remain accurate and compliant.
3. Update Employee Payroll Records for the New Tax Year
Next, update payroll records for every employee working for you on April 6. This includes:
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Preparing a fresh payroll record for each employee
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Identifying the correct tax code for the new tax year
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Entering updated tax codes into your payroll software
Make sure you include all employees paid during the tax year—even those who have left during the year—as you must submit records for all leavers.
4. Issue P60s to Employees by May 31
You must provide every employee with a P60, which details their total pay and deductions for the 2014/15 tax year. Make sure to issue these by the deadline of May 31. This document is important for employees’ personal tax records.
5. Report Employee Expenses and Benefits Using P11D
Finally, submit P11D forms for any employee benefits or expenses paid during the tax year. You must report these to HMRC by July 6. Accurate reporting helps avoid penalties and ensures full compliance with HMRC requirements.
Following this payroll year end checklist will help you meet all HMRC deadlines and keep your payroll processes smooth. For more detailed information, click here
If you want to take the stress out of payroll year end and ensure everything is done accurately and on time, let our expert team handle it for you. Contact us today to find out how our payroll services can save you time and keep you compliant.