Payroll year end is fast approaching and now is the time to act to ensure you have put plans in place to ensure your payroll team are prepared. One of the key things to remember is that you must report to HMRC on the previous tax year by 19 April.
At the same time it is important to ensure that that you are prepared for the new tax year. There are a number of key dates to prepare for (set out below), as well as important steps to stay on top of payroll year end.
- Employees must receive their P60 by 31 May
All employees who are employed by you on the final day of the tax year (5 April), must receive a P60 by 31 May (on paper or electronically). A P60 details the tax an employee has paid on their salary in the previous tax year (2021/22).
- Check your payroll year end
Double check when your payroll year end is – does it end on week 52 or is there a week 53?
Week 53 could occur if your employees are paid on a weekly, fortnightly or four weekly basis and the pay date falls on 5 April 2021. If this is the case, you will need to complete your payroll for 5 April as normal before processing your year end.
If your employees are paid monthly, you will not have a week 53, so your payroll can be processed as normal.
- Have you processed any leavers or new starters?
Have any employees who have left the business, and any new starters, been processed? If not, ensure this has been done before submitting your Full Payment Submission (FPS) and Employer Payment Summary (EPS).
- Send your final Full Payment Submission (FPS) of the year
Once you have completed the steps detailed above, you can submit your final FPS and, if required, your EPS. To prepare for this, you need to process your final pay period and submit your last FPS – but only for your final pay period.
There is no difference to your FPS and EPS in the final pay period – other than some software’s will give you the option of FPS and Final FPS and you can then proceed with the payroll year end process.
- Process your payroll year end
Once final FPS has been submitted and the last period has been closed you can then produce your P60s and roll the tax year forward. P60s need to be with your employees by 31 May.
5 April: 2021/22 tax year ends on this date
6 April: 2022/23 tax year begins
From 6 April: Update your employee payroll records and update your payroll software
19 April: Deadline for final submission of the 2021/22 tax year
By 31 May: Employees must receive their P60s by this date
By 6 July: Report on employee expenses and benefits (if they aren’t being processed by payroll)
19 July: Payment of class 1A National Insurance contributions must be paid to HMRC by this date
We can help
Payroll year end can be stressful and time-consuming for many businesses – NR Barton’s payroll team are here to support any clients who have queries. Please get in touch with the team at email@example.com with any queries.