Year-end payroll: Your friendly reminder checklist

Another tax year has ended, and you’ve submitted your end-of-year payroll, but the work doesn’t stop there. To help you stay organised and ahead ofthe deadlines use our handy reminder checklist.

April 5^thhas come and gone, meaning the tax year has ended and the new tax year begins.

But, for employers, there are a few important tasks left to complete aslast year’s payroll isn’t over yet.

Whether you have just one employee or over a hundred, if you operate a limited company, then there are a series of year-end tasks to be complete to stay compliant with HMRC.

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Payroll Year End

Payroll Year End (PYE) is the end of the tax year for payroll purposes. It’s the time when companies must make their final submission to HMRC to ensure all their employees have the correct tax information on record for that year.

Employers’ main PYE responsibilities include:

·       Reporting to HMRC on the previous tax year ending 5^thApril

·       Providing P60s to all employees

·       Preparing systems and records for the new tax year beginning 6^th April.

There are anumber of tasks that must be completed by HMRC’s deadlines for PYE.

If you need to complete PYE for your organisation, our handy checklist below details everything you need to do.

End of year payroll tasks: A Checklist

√ Send your final Full Payment Submission(FPS) of the year

√ Update employee payroll records for the new tax year

√ Update your payroll software with new tax, NI and student loan thresholds

√ Provide all employees with a P60

√ Report taxable employee expenses and benefits

√ Pay any outstanding Class1A National Insurance

Payroll Year End tasks explained

Send your final Full Payment Submission (FPS) of the year

This final submission details payments made to employees along with any deductions such as tax, National Insurance and student loan repayments.  Submit this to HMRC on or before your employees’ pay day. Make sure your pay run is completed, and all records are up to date beforehand.

Update employee payroll records for the new tax year

From 6^th April, prepare new payroll record for every employee. Ensure each one has the correct tax code for the new year.

Update your payroll software

New tax years often brings updates to income tax thresholds, National Insurance rates, and student loan repayment rules. Make sure your software reflects these changes from 6^th April.

Any relevant new information should be entered into your payroll software from 6^th April. Some software providers may ask you to do it before this date.

Provide all employees with a P60

By 31^st May, all employees who worked for you during the previous tax year need to receive their P60 by 31^st May.

If you are exempt from filing your payroll online, copies of P60s may be ordered from HMRC.

Report taxable employee expenses and benefits

If you haven’t already reported on any taxable expenses and benefits through your payroll, you will needto submit an end-of-year report summarising the totals to HMRC by 6^thJuly.

To do this, you’ll need to fill in a P11D form providing details of each employee that you provided with a taxable expense or benefit.

You’ll also need to complete form P11D(b) to show howmuch Class 1A National Insurance you owe against those expenses or benefits andsubmit this to HMRC.

Pay any outstanding Class 1A National Insurance contributions

Payment of any outstanding Class 1A National Insurance reported on your P11D(b) must be paid by 22^nd July if you pay electronically (19^th July if paying by cheque).

We hope our checklistand explanations helps you confidently complete your Payroll Year End tasks and avoid penalties.

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If you need help with anything, including making sense of new rates and thresholds, please do give us a call.

We’re always more than happy to help make payroll and tax topics a little easier to understand andwe’re here to help make things smoother for you, so you can get back to enjoying some happy days.

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