Payroll Year End: What’s Required from Your SME

As the financial year draws to a close, businesses are gearing up for one crucial task: payroll year end. For those unfamiliar with the process, it might seem daunting, but we’re here to guide you through it step by step. 

Whens the payroll deadline? 

First things first, mark your calendars! The HM Revenue & Customs (HMRC) deadline for payroll year end is set for 19th April 2024. 

However, there is another date to make a note of: 

By 31st May 2024, ensure that your employees receive their P60 forms summarising their pay and deductions for the tax year. With this in mind, let’s delve into the essential tasks required to wrap up the payroll year smoothly. 

Step 1: Assess your payroll end date 

Your payroll may not necessarily conclude neatly on week 52. If your payroll frequency is weekly, two-weekly, or four-weekly, and your usual payroll date falls on 5th April, you may have additional pay runs to complete. These could be week 53, 54, or 56 depending on your pay schedule. It’s really important to adjust tax codes accordingly to avoid overcharging employees. 

Step 2: Review employee status 

Make sure that you take stock of any changes in your workforce, including leavers and new starters. If you’re a medium to large business with multiple employees, clear communication with managers ensures that no employee is overlooked. Addressing these changes before submitting your final reports to HMRC is very important, as sorting out errors post-deadline can be a difficult and drawn-out process. 

Step 3: Process final pay run 

Before beginning the year-end process, complete your final pay run for the tax year. Ensure that all necessary adjustments, including employee leavers, are accounted for. Timely submission of Full Payment Submission (FPS) and Employer Payment Summary (EPS) by 19th April is vital to ensure that you avoid retrospective adjustments. 

Step 4: Conduct year-end processing 

Use your payroll software to complete year-end processing. Submit your final EPS to HMRC, incorporating end-of-year declarations. This submission differs from routine EPS submissions and signals the conclusion of the tax year. 

Step 5: Distribute P60s 

By 31st May, your employees should have been given their P60 forms. These documents encapsulate their earnings and deductions for the tax year. Ensure accuracy by waiting for feedback on final payslips before generating P60s. Use your payroll software to help make this process as smooth as possible, offering both digital and print options for distribution. 

Step 6: Prepare for the new payroll year 

Transitioning smoothly into the new tax year is important for keeping your payroll on track. To do this, you’ll want to look at a document called the P9X, which HMRC provides. This document tells you about any changes to tax codes and thresholds that start from 6th April.  

It’s really important to check these updates carefully to make sure you’re following the rules. Payroll professionals need to double-check everything to stay compliant with the law. 

But there are a couple of other things you’ll need to take care of too. If any employees have deferred National Insurance, you’ll need to make sure they have new certificates for the new tax year. These certificates are only good for one year, so you’ll need to renew them.  

And if your employees receive childcare vouchers, there’s a bit of paperwork called a Basic Earnings Assessment (BEA) that needs to be done before the first pay period of the new tax year. This helps HMRC keep track of who’s eligible for how much. 

By staying on top of these details, you can start the new payroll year on the right foot, making sure everything runs smoothly for your business and your employees! 


If you have questions about any aspect of your finances, please get in touch with the Trinity team. We’d love to help! 

Interested ?

Send us a few details and one of our team will be in touch to see how we can save you tax