It’s a great idea to have a checklist for your Year-end Payroll Tasks because let’s face it, there’s a lot to think about.
No matter whether you manage payroll yourself or use a provider like Highland Payroll Services, having a clear year-end checklist can help you stay compliant and avoid unnecessary stress because life can be stressful enough.
Here’s a straightforward guide to the essential year-end payroll tasks every UK business needs to consider.
- Double-Check Employee Information
First of all, start by reviewing all employee details. This includes full names, home addresses, National Insurance numbers, current tax codes and so on. Mistakes made here can lead to problems when you submit your year-end documents to HMRC and issue employee paperwork like P60s. A quick check now will definitely prevent bigger issues down the line.
- Process Final Payments
Next, is to complete all pay runs for the financial year. This includes overtime, holiday pay, bonuses, and any statutory payments, such as maternity, paternity, or sick leave. You need to make sure all deductions, such as student loans, pensions, tax, and National Insurance, are calculated and applied correctly. This ensures that your reporting is accurate and that your employees are paid the right amount!
- Submit Your Final FPS and EPS
You will have to, before the end-of-year deadline, send your final Full Payment Submission (FPS) to HMRC via your payroll software, or we can do it for you. If you’ve made any statutory payment claims or adjustments, you’ll also need to send an Employer Payment Summary (EPS).
These reports are a crucial part of your year-end payroll tasks, ensuring your records are up to date. So don’t forget them!
- Distribute P60s
You need to give your employees who were still employed by your business on 5 April their P60 before 31 May. This document details their total pay and the deductions for the tax year. They need it for a variety of things, including completing their own tax returns, loan applications, or mortgage checks, so it’s important that it’s accurate and they receive it on time.
- Prepare for the New Tax Year
Last but not least, you need to update your payroll software with the latest tax codes, National Insurance, and new statutory rates for the new tax year. This belt-and-braces approach will make sure your payroll runs smoothly from April onwards.
- Plan for the Year Ahead
When everything is done, it’s an ideal time to review your current payroll setup. Is it working for you? If things feel rushed or confusing, outsourcing could save you time and stress.
Highland Payroll Services supports businesses across the Highlands and the UK with reliable, compliant, and tailored payroll solutions.
Let’s make your life easier and let us do the heavy lifting. Lets talk today.
