UK Payroll Year-End Checklist

Before 5 April (final payroll of the tax year)

1. Confirm Final Payroll Dates
   • Ensure all payroll runs are scheduled correctly before 5 April.
   • Account for bank holidays affecting BACS payments.
2. Check Employee Details
   • Verify employee names, addresses, National Insurance (NI) numbers, and tax codes.
   • Update any leavers and process final payments.
3. Ensure All Payroll Adjustments Are Made
   • Process any outstanding overtime, bonuses, or deductions.
   • Reconcile any salary sacrifice schemes (e.g., pensions, cycle-to-work).
4. Review Benefits & Expenses (P11D Considerations)
   • Ensure all taxable benefits (e.g., company cars, medical insurance) are recorded.
   • If you’re using payrolling benefits, ensure it's reported correctly.
5. Submit Any Outstanding RTI (Real-Time Information) Reports
   • Double-check that Full Payment Submissions (FPS) and Employer Payment Summaries (EPS) are up to date.
   • Submit any adjustments for under/overpayments.

On or before 5 April

1. Process Final Payroll for the Year
   • Run payroll as usual, ensuring correct tax and NI calculations.
   • Include any termination payments if applicable.
2. Submit the Final FPS to HMRC
   • Mark the submission as the final one for the tax year.
   • Confirm all year-to-date figures are correct.
3. Submit the Final EPS (if needed)
   • If you’ve reclaimed statutory payments or received Employment Allowance, send an EPS.
   • Declare ‘No Payments Due’ if applicable.

After 5 April: preparing for the new tax year

1. Issue P60s to Employees (by 31 May)
   • Provide employees with their P60s via payroll software or self-service portal.
   • Ensure P60s include total earnings, tax, and NI paid during the year.
2. Prepare P11D & P11D(b) Submissions (by 6 July, if applicable)
   • Report any taxable benefits and submit forms to HMRC.
   • Pay Class 1A NICs on benefits by 22 July (or 19 July if paying by post).
3. Update Payroll for the New Tax Year (from 6 April onwards)
   • Apply new tax codes (HMRC will issue P9 tax code notices).
   • Update statutory rates (e.g., SMP, SSP, NLW/NMW).
   • Check changes in NI thresholds and pension auto-enrolment contributions.
4. Reconcile PAYE Payments & HMRC Liabilities
   • Ensure PAYE liabilities match HMRC records.
   • Pay any outstanding tax & NICs before HMRC deadlines.
5. Review Payroll Software & Systems
   • Ensure software is updated for the new tax year.
   • Test any changes before running the first payroll of the new year.
6. Check Employment Allowance Eligibility
   • If eligible, claim the £10,500 Employment Allowance (from 6 April 2025) for the new tax year.
7. Communicate Tax Year Changes to Employees
   • Inform staff about changes in tax codes, minimum wage, and statutory payments.
   • Encourage employees to check their Personal Tax Account on HMRC.