As the UK tax year ends on 5 April, employers must complete several key payroll tasks to stay compliant with HMRC. Processing the final payroll run is essential, ensuring all pay, deductions, and benefits are correctly recorded. The final Full Payment Submission (FPS) must be sent to HMRC on or before the last payday, along with an Employer Payment Summary (EPS) if required.
Employers must provide P60s to all employees who were on payroll at the year-end by 31 May 2025. These summarise total earnings and deductions, and employees rely on them for tax returns or financial applications. It’s also crucial to ensure all P45s have been issued correctly for any leavers.
If benefits like company cars or private healthcare were provided, these must be reported via P11D forms by 6 July 2025. Employers also need to pay Class 1A National Insurance on benefits by 22 July 2025. For those using payrolling benefits, all records must be accurately maintained.
Ensuring that PAYE and National Insurance Contributions (NICs) are up to date is crucial, with final payments for the tax year due by 22 April 2025. Updating employee tax codes for the new tax year is equally important, as HMRC issues revised codes on 6 April. Payroll software should be updated to reflect changes in tax thresholds, National Insurance bands, and minimum wage rates.
Submitting a final Employer Payment Summary (EPS) by 19 April 2025 is necessary if reclaiming statutory payments. Employers should also conduct a payroll audit to verify employee details and deductions. Staying aware of legislative changes in the new tax year, including updates to income tax thresholds and statutory pay rates, ensures compliance and smooth payroll processing.
