If you have our team looking after your payroll sit back and relax, if not here is your list of things to do.
Key Tasks to Tackle
The end of the tax year (5th April) is creeping closer, here's a breakdown of the critical tasks:
1. P60s: The Annual Salary Statement
What it is: The P60 is a crucial document summarising an employee's total pay and deductions for the tax year.
Action: You must provide a P60 to all employees who are employed on the 5th of April.
Timing: These must be provided by the 31st of May following the end of the tax year.
Preparation: Start preparing your payroll data now to ensure accuracy and timely delivery. Double-check employee details, including National Insurance numbers and addresses.
2. P11Ds: Benefits and Expenses Reporting
What it is: The P11D form reports benefits in kind and expenses provided to employees that are not subject to PAYE. Examples include company cars, private medical insurance, and certain expenses.
Action: If you provide any benefits or expenses, you must submit a P11D for each relevant employee.
Timing: P11Ds must be submitted to HMRC and provided to employees by the 6th of July following the end of the tax year.
Preparation: Gather all relevant data on benefits and expenses provided throughout the year. Ensure accurate valuation of these benefits.
3. Employer Annual Declaration (EAD): Final Submission
What it is: The EAD is your final Full Payment Submission (FPS) for the tax year. It confirms that you've submitted all payroll information accurately.
Action: Ensure your final FPS is submitted on or before the final pay date of the tax year.
Timing: This is the last step of the tax year and needs to be completed prior to the 19th of April.
Preparation: Review all payroll data for the year to confirm accuracy and completeness. Reconcile your payroll records with HMRC's records.
4. Reviewing and Updating Employee Records
Action: Review employee details, including addresses, National Insurance numbers, and bank details.
Preparation: Request employees to update their personal information if necessary. Verify that all employee data is accurate and up to date.
Why: Accurate employee data is crucial for correct tax and National Insurance calculations, as well as for issuing P60s and P11Ds.
5. Software Updates and Year-End Routines
Action: Ensure your payroll software is up to date with the latest tax codes and legislation.
Preparation: Run year-end routines in your payroll software to close the current tax year and prepare for the new one. Check for any software updates from your provider.
Why: Updated software helps you stay compliant with the latest regulations and ensures accurate calculations.
6. Dealing with Leavers and Starters
Action: Process P45 forms for employees who have left and P46 or starter checklists for new employees.
Preparation: Ensure all leavers' final pay and deductions are processed correctly. Verify that new employees' starter information is accurate and submitted to HMRC.
Why: Correctly managing leavers and starters is essential for accurate payroll records and tax calculations.
7. National Insurance Contributions (NICs) Reconciliation
Action: Reconcile your NICs records with HMRC's records to ensure accuracy.
Preparation: Compare your payroll records with HMRC's records to identify any discrepancies. Investigate and resolve any differences promptly.
Why: Accurate NICs calculations are essential for compliance and employee benefits.
8. Planning for the New Tax Year
Action: Familiarise yourself with any changes to tax codes, National Insurance thresholds, and other relevant legislation for the new tax year.
Preparation: Update your payroll software and processes to reflect any changes. Communicate any changes to employees.
Why: Staying informed about changes ensures compliance and accurate payroll processing in the new tax year.
Tips for a Smooth End-of-Year Process:
Start early: Don't leave everything until the last minute.
Double-check everything: Accuracy is paramount.
Keep clear records: Maintain thorough and organised payroll records.
Utilise payroll software: Invest in reliable payroll software to automate tasks and reduce errors.
Seek professional help: Give us a call!
HMRC resources: The HMRC website is a valuable resource for guidance and information.
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