PAYE year-end tasks

Guide summary

You must complete your final Full Payment Submission (FPS) by 19 April, give P60s to employees by 31 May, and report benefits by 6 July. Prepare by updating payroll software and applying new tax codes before 6 April. Late filings can lead to monthly penalties of £100 to £400 depending on how many employees you have.

Submit final FPS by 19 April marking it as final
Give P60 to all employees on payroll by 31 May
Report expenses and benefits on P11D by 6 July
Pay Class 1A NIC by 22 July (electronic) or 19 July (cheque)
Update payroll software with new tax codes before 6 April
Check employee records for correct NI numbers and tax codes
Plan final payroll to include all payments up to 5 April
Penalties for late FPS: £100 to £400 per month
No penalty if FPS within 3 days of payday or first 30 days for new employers
Do not issue P60 to employees who left before 5 April

The tax year runs from 6 April to 5 April. At the end of each tax year, employers must complete specific tasks to close out the year and prepare for the new one.

Tax year end: 5 April
Final FPS deadline: 19 April (for submissions dated up to 5 April)
P60 deadline: 31 May
P11D deadline: 6 July
Class 1A NIC deadline: 22 July (electronic) or 19 July (cheque)

Before 6 April - Preparation

Apply new tax codes - HMRC sends new codes in February/March
Update payroll software - ensure new rates and thresholds are loaded
Review employee records - check addresses, NI numbers, tax codes
Plan final payroll - schedule processing before 5 April

5 April - Final FPS

Your last FPS of the tax year must:

Include all payments - up to and including 5 April
Mark as final submission - tick "Final submission for year" indicator
Include any leavers - with leaving date up to 5 April

Late submission - you have until 19 April to submit the final FPS without penalty.

P60 end of year certificate

Requirements for providing P60 certificates to employees.

A P60 is an annual certificate showing an employees total pay and tax deducted during the tax year. Employers must provide one to every employee on their payroll on 5 April.

Who gets a P60: All employees on your payroll on 5 April (last day of tax year)
Deadline to provide: By 31 May following the tax year end
Format: Paper or electronic (with employee agreement for electronic)
Leavers: Do NOT issue P60 to employees who left before 5 April
Multiple employments: Issue P60 for each PAYE employment with you

Information on P60

Employee details: Name, National Insurance number
Pay in this employment: Total taxable pay in the tax year
Tax deducted: Total income tax deducted
NI contributions: Employees NI deducted and NI category
Student loan deductions: Total student loan deducted (if applicable)
Statutory payments: SSP, SMP, etc. paid
Final tax code: Tax code used at year end

Why employees need P60

Employees use their P60 to:

Complete Self Assessment tax returns
Prove income for mortgage applications
Claim tax refunds from HMRC
Apply for benefits or tax credits

Give employees a P60 (opens in a new tab)

By 6 July - P11D returns

If you provided expenses or benefits to employees that were NOT payrolled:

Submit P11D online - for each employee who received benefits
Submit P11D(b) - summary showing Class 1A NIC due
Give employees copy - by 6 July
Pay Class 1A NIC - by 22 July (or 19 July by cheque)

New tax year preparation

Update rates - NMW, SSP, SMP, NI thresholds change each April
Apply tax code changes - new codes effective from 6 April
Claim Employment Allowance - submit EPS to claim for new year
Check statutory payment rates - new weekly amounts apply

RTI late submission penalties

Penalties for late or non-filing of FPS and EPS submissions.

HMRC charges penalties for late filing of Full Payment Submissions (FPS). Penalties are calculated monthly but issued quarterly.

1-9 employees: £100 per month late
10-49 employees: £200 per month late
50-249 employees: £300 per month late
250+ employees: £400 per month late
De minimis threshold: No penalty if quarterly total under £75
3-day easement: No penalty if FPS submitted within 3 days of payday
New employer first FPS easement: No penalty if the first FPS is sent within 30 days of paying an employee

When penalties are NOT charged

FPS is late but within 3 days of payday (though regular late filing may be challenged)
You are a new employer and sent your first FPS within 30 days of paying an employee
You have a reasonable excuse (appeal required)
You sent an EPS to say no employees were paid that month

Additional charges

Specified charges: If you fail to file and HMRC estimates your liability, you may face a specified charge (estimate based on previous returns). Interest accrues on unpaid amounts from the due date.

What happens if you do not report payroll information on time (opens in a new tab)

Legal basis

Primary legislation and key regulations

Taxes Management Act 1970 Primary 1970 · UK-wide The Income Tax (Pay As You Earn) Regulations 2003 SI 2003 · UK-wide

Browse UK legislation legislation.gov.uk

Official guidance

Employer National Insurance rates (opens in a new tab)

HMRC

Employment Allowance (opens in a new tab)

HMRC

Find payroll software (opens in a new tab)

HMRC

PAYE and payroll for employers (opens in a new tab)

HMRC

Pay Apprenticeship Levy (GOV.UK) (opens in a new tab)

HMRC

Running payroll (opens in a new tab)

HMRC

PAYE year-end tasks

Before 6 April - Preparation

5 April - Final FPS

By 6 July - P11D returns

New tax year preparation

Legal basis

Official guidance

Related guides in Tax & Finance

Run payroll and submit RTI

Pay PAYE to HMRC

Understanding PAYE tax codes

Handle a new starter without a P45

Correct PAYE errors