Preparing For Payroll Year End
16th March, 2023
The payroll year end is quickly approaching – but are you prepared? If not, this blog post is for you. A good way to prepare for payroll year-end is to understand in advance exactly what you’ll be required to submit.
This means you can plan throughout the year and begin to compile all the necessary files into one place as you progress.
HMRC offers a handy Introduction to PAYE guide with information on what to include in your payroll year end for 2022/23.
It’s important to know what you need to get it right. We are here to help you get prepped and ready for payroll year end – continue reading for our helpful guide.
Step 1: Check When Your Payroll Ends
In some circumstances, your payroll might not end on week 52. If so, you may need to complete an additional payroll. This will mean your payroll ends on week 53, or possibly week 54 or 56. This happens in these two instances:
- You process payrolls weekly, two-weekly, or four-weekly (monthly payrolls are excluded).
- Your usual payroll date falls on 5 April in any year (or 4 April if it’s a leap year).
Most payroll software will do this automatically – but be sure to check. If the tax code status is not amended to a week-one basis, most employees will pay too much tax.
Step 2: Check for Leavers or New Starters
If employees have left your business during the past year, or if there have been new starters, now’s the time to check to ensure that employee payroll records have been processed.
You must do this before submitting your final Full Payment Submission (FPS) or Employer Payment Summary (EPS). If you get this wrong, it isn’t always an easy fix.
Step 3: Send Your Final FPS of The Year
Once you’ve worked out whether you have a week 53 (or 54/56), processed the final payroll of the tax year and have made any relevant employees’ leavers, you can send your final FPS and, if required, EPS. The deadline for final FPS is the 19th of April.
Step 4: Process Your Year End
Using your payroll software, you can process your year end and make your final submission for the 2022/23 tax year.
Step 5: Get Your P60s Ready
Employees who are working on the final day of the tax year need to receive a P60 from you by the 31st of May.
Using your payroll software, you can generate your P60s and securely share them online with your employees, usually in the same way you share payslips.
Step 6: Check The P9X And Start Your New Payroll Year
The P9X is the document published by HMRC that explains what tax codes employers must change or carry forward on 6 April.
Things are a little unusual from now until April 2026. This is because the government announced in the Spring Budget 2022 that the personal allowance and some tax thresholds have been frozen. See here for the current Rates and thresholds.
Payroll Year End Dates to Be Aware Of
Here are some of the key dates around payroll year end to be aware of, along with some other payroll dates that you need to be aware of.
- 5th of April – Last day of the tax year, mark all leavers
- 6th of April – All new tax codes in place for the new tax year
- 19th of April – Deadline for the 22/23 final submission
- 22nd of April – TM12 22/23 PAYE payment due
- 31st of May – Deadline for P60 distribution
- 6th of July – Report P11d information
- 22nd of July – Payment of class 1a NI in relation to P11d
Consider Managed Payroll
Whether you have one employee or 1000 employees, our outsourced bureau service can help with all aspects of payroll – allowing you to focus on other areas of your business.
We can also provide compliance to all associated requirements for auto-enrolment, pensions and other payments – ensuring all are paid accurately and effectively.
At Haggards Crowther, we offer industry-leading expertise, with over 20 years of payroll experience and many years in providing managed services.
Our outsourcing payroll services are recognised by HMRC, so you can relax knowing that your payroll compliance is in expert hands.
Haggards Crowther can guarantee you will receive requested information within 2 working days of receipt but will do its utmost to turn around your request within 24 hours. Check out this page to learn more about our services.
We wish to provide a clear and transparent charging structure. Therefore, our fees are linked directly to the number of employees and services provided. Fees are agreed in advance and charged quarterly.
Our team provide a bespoke experience to all of our valued clients. Contact us today to learn more about how we can help you and your business.