Every employer should follow a clear Payroll year end and new tax year checklist to meet HMRC obligations and avoid costly mistakes.
The tax year ends on 5 April. The new tax year begins on 6 April. During this period, you must complete key reporting tasks and prepare your payroll for updated tax rules.
Your Payroll Year End and New Tax Year Checklist Explained
A structured Payroll year end and new tax year checklist helps you meet deadlines, issue the correct documents and start the new tax year with accurate records.
Sending Your Final Payroll Report
Submit your final Full Payment Submission (FPS) on or before your employees’ last payday before 5 April.
Most payroll software includes a field that lets you mark the submission as final. Make sure you select this option.
If you run more than one payroll under the same PAYE scheme, send a final submission for each one. For example, you may operate both weekly and monthly payrolls.
In some cases, you must send an Employer Payment Summary (EPS) instead of an FPS. This applies if you did not mark the final submission correctly, if your software does not offer a final submission option, if you did not pay employees in the final period, or if you sent your final submission early and later had months with no payments.
If you submit your final report late, you can still correct the figures. From 20 April onwards, send updated year to date figures through payroll reporting.
Employers who pay weekly, fortnightly or every four weeks may need to process a week 53 payment. Your payroll software will usually calculate this. However, you must enter the correct tax week when you submit the final report. HMRC will contact the employee directly if this creates an underpayment.
If you spot an error, act quickly. You may need to submit corrected year to date figures. In some cases, you must also report an amended payment date.
Updating Employee Payroll Records
Review your payroll records from 6 April. Update the details for every employee who still works for you.
Check that you apply the correct tax code for the new tax year. Apply any new tax code notices from HMRC. Update your payroll software to reflect those changes.
Keep records for everyone you paid during the tax year. Include anyone who worked for you at any point since 6 April, even if they have now left.
HMRC may send individual tax code notices for specific employees. They may also issue general updates for common tax codes. Use HMRC’s PAYE Desktop Viewer to review multiple notices more easily.
When you hire new employees, use the details from their P45 or starter information to work out the correct tax code.
Update Your Payroll Software
Update your payroll software before you run your first payroll in the new tax year.
Your provider will release updated tax tables and thresholds. These include Income Tax bands, National Insurance thresholds and student loan repayment rates.
If you use Basic PAYE Tools, install the latest version before processing payroll. Newer versions update automatically when tax rules change.
Issue P60s to Employees
Give a P60 to every employee who appears on your payroll on 5 April. You must issue these by 31 May.
The P60 shows total pay and deductions for the tax year.
If you find a mistake, issue a replacement P60 or confirm the correction in writing.
If you do not file payroll online, you can order paper P60 forms from HMRC.
Report Expenses and Benefits
Report expenses and benefits through your payroll software if you use payrolling for benefits.
Submit this information to HMRC by 6 July following the end of the tax year.
Pay any Class 1A National Insurance on taxable benefits by 22 July if you pay electronically. If you pay by post, make sure HMRC receives payment by 19 July.
Staying Compliant into the New Tax Year
Follow this Payroll year end and new tax year checklist to stay compliant and organised.
Complete your reports on time. Update your records carefully. Install payroll updates before you process April pay.
Strong preparation will help you avoid penalties and start the new tax year with confidence.