Payroll year end is not to be confused with PAYE. Every year, after your last pay run but before 19 April, you’ll need to send specific information to HMRC.
Here’s a step-by-step guide to ensure a smooth transition and avoid common pitfalls.
1. Check The End Date of Your Payroll.
Payroll may extend beyond week 52, reaching weeks 53, 55, or 56. Regardless, two key points apply:
● Payrolls are processed weekly, fortnightly, or four-weekly.
● The standard payroll date is 5 April.
For a weekly payroll on 5 April, handle a week 53 payroll; for a fortnightly payroll, process a week 54 payroll; and for a four-weekly payroll, manage a week 56 payroll. Your payroll software should automate this, but a quick check is always wise.
2. Process Leavers and New Starters.
Ensure accurate records: Check if departures and new hires in the past year were processed correctly. Cover all bases before submitting your Full Payment Submission (FPS) or Employer Payment Summary (EPS). After entering the next payroll year, amending details becomes complex.
3. Undertake The Final Pay Run.
Complete your final 2022/23 pay run before running year-end. Verify if it includes weeks 53, 54, or 56. Afterward, submit your FPS and EPS, if needed, by April 19.
Don’t forget to record your P32 payment to HMRC. To avoid complications, minimise errors before April 19—an admin hassle everyone prefers to sidestep.
4. Carry Out Your Year-End.
Simplify year-end with payroll software. Select your tax year on the year-end screen, submit the final EPS with end-of-year declarations, and complete your year-end. Now, you’re set to prepare P60s.
5. Prepare Your P60s.
Provide P60s to all employees by May 31, including those affected by IR35. The P60 summarises pay and deductions for the tax year. Use payroll software to generate and share
online or print. Wait until the final payslip, allowing time for employee feedback to catch any errors.
6. Check The P9X and Begin The Next Payroll Year.
Transitioning between tax years involves more than just year-end tasks. The P9X, an HMRC document, outlines upcoming tax code changes.
Verify software support documents and government web pages for accurate information before the first pay run of the new year.
Additionally, manually check and renew CA2700 certificates for deferred National Insurance Contributions and review individuals receiving childcare vouchers for potential entitlement amendments through a Basic Earning Assessment (BEA).
Need more advice?
Payroll year end doesn’t need to be stressful!
Our friendly, Hitchin-based team is on-hand to help you:
info@modina.co.uk | 020 7183 8241