Payroll Year-End Checklist

Payroll Year-End Checklist: Everything You Need to Know Before the 5th April Deadline

 

📅 The payroll year-end is fast approaching! If you’re a UK business owner or payroll manager, now is the time to ensure everything is in order to avoid penalties and ensure a smooth transition into the new tax year. In this guide, we’ll walk you through everything you need to do before the 5th April deadline.

 

Why Is Payroll Year-End Important?

Payroll year-end is the process of finalising payroll for the tax year, submitting required reports to HMRC, and preparing for the new tax year. It ensures your business remains compliant with UK payroll regulations and that employees' records are correct for tax and National Insurance purposes.

Failing to submit accurate payroll data on time can lead to penalties from HMRC, incorrect tax codes for employees, and additional administrative headaches.

 

Payroll Year-End Checklist ✅

🔹 1. Complete Your Final Full Payment Submission (FPS)

• Send your last FPS on or before your employees’ last payday of the tax year (before 5th April).
• Ensure all employee earnings, deductions, and tax/National Insurance contributions are correctly recorded.
• If you’re paying any final bonuses or additional payments, make sure they are included.

 

🔹 2. Send Your Employer Payment Summary (EPS) (If Required)

• If you have statutory payments to reclaim (e.g. Statutory Sick Pay or Maternity Pay), submit your EPS by 19th April.

 

🔹 3. Provide Employees with Their P60s

• Every employee who was on payroll on 5th April must receive a P60 by 31st May.
• The P60 shows their total earnings and deductions for the tax year.
• This can be sent digitally or as a printed copy.

 

🔹 4. Update Employee Payroll Records

• Review and update employee details (names, addresses, tax codes, etc.).
• Identify any employees who have left and ensure their final pay and P45 details are correct.

 

🔹 5. Check for Tax Code Changes

• The new tax year may introduce updated tax codes for employees.
• HMRC usually issues P9 notices for tax code changes in March – update payroll software accordingly.

 

🔹 6. Review Payroll Benefits & Expenses (P11D Preparation)

• If your company provides benefits like company cars, private healthcare, or bonuses, you must report these via a P11D submission (due by 6th July).
• Ensure you have accurate records for all employee benefits.

 

🔹 7. Review National Minimum Wage & Auto-Enrolment Pension Rates

• The National Minimum Wage (NMW) and National Living Wage (NLW) usually increase from April – check that all employees meet the new rates.
• Review pension contributions to ensure compliance with auto-enrolment obligations.

 

🔹 8. Process Any Payroll Software Updates

• If you use payroll software, check for new updates that accommodate tax year changes.
• Ensure any new features (e.g. HMRC compliance changes) are activated.

 

🔹 9. Prepare for the New Tax Year (2025/26)

• Set up payroll for the new tax year starting 6th April 2025.
• Confirm any changes to PAYE tax thresholds, National Insurance rates, or student loan repayments.
• Adjust payroll schedules if necessary.

 

🔹 10. Submit Final Reports to HMRC & Keep Payroll Records

• All payroll reports must be submitted on time to avoid fines.
• Keep payroll records for at least three years, as required by HMRC.

 

Common Payroll Year-End Mistakes to Avoid 🚨

❌ Missing the FPS deadline and getting fined by HMRC.

❌ Forgetting to update tax codes, leading to incorrect deductions.

❌ Not issuing P60s to employees by 31st May.

❌ Failing to reclaim statutory payments by submitting an EPS.

❌ Not reviewing payroll software updates before the new tax year begins.

By avoiding these common mistakes, you’ll save yourself time, money, and unnecessary stress!

 

How Personal Payroll Can Help! 🏆

 

Payroll year-end can be overwhelming, but you don’t have to do it alone! Personal Payroll offers expert payroll outsourcing services to ensure your payroll is accurate, compliant, and stress-free.

 

We handle: 

✅ HMRC payroll submissions & compliance checks.

✅ P60 & P11D processing for employees.

✅ Tax code updates and payroll software management.

✅ Full payroll setup for the new tax year.

 

🚀 Let’s make your payroll stress-free! Get in touch today for expert payroll support.

 

📧 Email us: Contact@personalpayroll.co.uk

📞 Call us: 01276 58 30 58

📅 Book a free payroll audit: Click Here

 

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