UK Payroll Year-End Checklist

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).
  
  

1. 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.
  
  

1. Reconcile PAYE Payments & HMRC Liabilities
   
   

• Ensure PAYE liabilities match HMRC records.
  
  
• Pay any outstanding tax & NICs before HMRC deadlines.
  
  

1. 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.
  
  

1. Check Employment Allowance Eligibility
   
   

• If eligible, claim the £5,000 Employment Allowance for the new tax year.
  
  

1. 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.