As the calendar flips to the 2024/25 tax year, your business will be gearing up for several year-end processes. One critical aspect that requires dedicated attention, however, is your organisation’s payroll. Preparing for the new payroll year involves more than just updating your calendar and submitting forms; it demands a comprehensive strategy to ensure compliance, efficiency, and accuracy.
At FT Pay, we’re experienced at dealing with the intricacies of payroll year-end, working with your business to ensure compliance, efficiency, and accuracy. Take a look below at how we can help to navigate your organisation’s payroll year-end.
1. Ensure your Employee Payroll Records up to date
First things first, you will need to inform us of any new starters or leavers in the past month. Year-end is the ideal time to make sure that nothing has gone unnoticed throughout the year. Double check that we have been informed of all new starters or employee exits, as these may be harder to correct once we have entered the new payroll year. Similarly, make sure that we have received any updates to any personal information, bank account details, and tax codes across your workforce.
You will then need to inform us of any discrepancies in your workforce’s pay for March, whether deductions for sick pay, increases for a pay rise or a one-off bonus.
2. Your final Full Payment Submission (FPS) and Employer Payment Summary (EPS)
Before closing out on the current payroll year, we must submit your final FPS to HMRC on or before your employee’s last payday of the tax year (which will be on or before 5th April). Your FPS is a monthly report to HMRC informing them of the payments made to your employees and detailing any deductions to their pay for that month.
When we submit your FPS to HMRC, we’ll also let them know that it’s your organisation’s final payroll submission of the year. As the final FPS of the year, your March report will also include your end of year information, including all the employees you paid in the tax year (since 6th April 2023), no matter how much you have paid them or whether they have left the business.
We may also need to submit an EPS by 19th April, should you want to claim any payments or reclaim deductions, such as statutory leave or employment allowance. On the rare occasion that no employees were paid in the reporting period, you would only need to submit an EPS (no FPS needed).
3. Conduct a Year-End Review
Before finalising the transition into the new payroll year, conduct a thorough year-end review to ensure all necessary tasks have been completed.
This includes reviewing payroll records, submissions, and compliance documentation to identify any discrepancies or outstanding issues. The deadline to easily correct wrong payments or deductions is 19th April. Following this, a new full FPS submission would be required.
4. Giving Employees a P60
We will provide your employees with a P60 form by 31st May, summarising their total pay and deductions for the 2023/24 year. All individuals who are employed by your business on the 5th April must receive a P60 – this is why it’s crucial to ensure that we have the most up to date records before we begin your year-end processes.
5. Report Expenses and Benefits
Although you’ll probably be more than ready to wave goodbye to the 2023/24 year, it doesn’t end with the P60 deadline! We will still require the information needed to report your employees’ expenses and benefits by 6th July. Following this, the deadline to pay any Class 1A National Insurance due on the taxable expenses and benefits by 22nd July.
There are many payroll deadlines throughout the year – you can access our calendar of key payroll dates here:
If you don’t already outsource your payroll to FTPay, why not consider making the switch entering the new payroll year? Our in-house payroll bureau is staffed by experienced payroll operators, who are eager to assist you in maintaining your payroll, meeting statutory obligations and paying your staff on time.
To get in touch about your payroll year-end process or to enquire about our outsourced services, please don’t hesitate to get in touch with fabricelegris@fiandertovell.co.uk.