The payroll year end is fast approaching and it’s important to make sure that you are prepared. There are a number of things you need to do to in order to successfully end the payroll year. Below we have devised a checklist to help guide you to a smooth and successful payroll year end.
Check When Your Payroll Ends
Does it end on week 52 or week 53? The week in which your payroll will end depends on how your workers get paid. If workers get paid monthly then the payroll will end on week 52 however, if some or all of your workers are paid weekly, fortnightly or four weekly then you may have a week 53. If their pay date falls on the 5th April then you have a week 53.
Check For Any Leavers
If any employees have left your business they need to be processed as leavers. It is important that is done before submitting the FPS (Full Payment Submission) or EPS (Employer Payment Summary).
Prepare P60s
You must send p60s for any employee who is working for you on the 5th of April. You can order copies of p60 forms from HMRC or your software may be able to produce a PDF version to send out. Employees must have received their P60’s by the end of May.
Submit The Final FPS or EPS For The Year
FPS (full payment submission) is a form that tells HMRC what deductions and payments have been made to employees. These should be submitted every month. EPS (employer payment summary) can also be submitted every month depending on each employer circumstance, if any statutory pay has been made EPS has to be submitted by the 19th of the following month. When submitting EPS reductions can be claimed i.e. maternity pay, employment allowance and apprenticeship levy. Remember to double check all information is correct before submitting final EPS. If you discover that you have made a mistake in your final payroll run and need to change something after the deadline (19th April) you can submit a EYU (Earlier year update) to correct it.
Prepare and Submit P11D’s
A P11D is a form that you have to submit to HMRC that detail cash equivalents of benefits and expenses that have been provided by employers during the tax year. These benefits can include interest-free loans which are above the statutory threshold, private medical insurance or company cars. These can be submitted to HMRC as a hard copy or as an electronic submission. The deadline for submitting the P11Ds is on the 6th July after the end of the tax year. I.e. 2023-2024 tax year the deadline for submitting P11d for this period will be 6th July 2024.
Update Employee Payroll Records
Now that you have processed the final payroll for the year you can start to update the employee records for the next payroll year. For each employee working for you on the 6th April, you’ll need to identify that you are using the correct tax code for them and enter their new tax code on your payroll software. The national minimum wage will also increase from 6 April so this may need to be accounted for as well.
When does payroll year end have to be submitted?
5th April – The end of the tax year
6th April – New tax year beings
From 6th April – Update employee records
19th April – Deadline for the final submission
31st May – Deadline for employees to receive their p60s
By 6th July – Expenses and benefits need to be reported
6th July – Deadline to submit P11D forms
If you need any help or advice with the end of year payroll, take a look at our Payroll Services and please do not hesitate to get in contact with us.
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