Blog

18th April 2019

Payroll Year End – What to think about?

As an employer running payroll, you need to:

  • Report to HM Revenue and Customs (HMRC) on the previous tax year (which ends on 5 April) and give your employees a ‘P60’.
  • Prepare for the new tax year, which starts on April 6.

 

1. Send your Final Payroll Report

You need to send your final ‘ Full Payment Submission’ (FPS) before your employees’ last payday of the tax year ( which ends on April 5). For example, if your last pay day of the tax year is 28 March, then you’ll need to submit your final FPS on/ before 28 March. You will also need to submit an ‘Employer Payment Summary’ (EPS), as applicable and don’t forget to submit your ‘End of Year Questions and Declarations’.

2. Correcting Payroll Information

If you find a mistake in your FPS of the year, what you need to do depends on the type of mistake and when you find it. After you submit your FPS for the 2014/ 2015 year end, you only have until April 19 to re-submit your FPS with the corrected figures. From April 20, you will have to send an ‘Earlier Year Update’ (EYU) if you need to amend any errors.

3. Update Employee Payroll Records

For each employee working for you on April 6, you will need to:

  • Prepare a payroll record,
  • Identify the correct tax code to use in the new tax year,
  • Enter their tax code in your payroll software.

You should include in your payroll:

  • All employees you pay in the tax year, no matter how much you pay them.
  • Any employee who has worked for you in the current tax year (since April 6) even if they have already left (submit as leaver).

4. Give Employees a P60

You will still need to give all employees a P60 outlining their total pay and deductions during the 2014/ 2015 tax year. The deadline for issuing P60 is 31 May.

5. Report Expenses and Benefits

Any benefits or expenses paid to an employee are highlighted on a ‘P11D’. You must tell HMRC how much you have given an employee in benefits or expenses by submitting a P11D for every employee by 6 July.

For more information, click here