Journey

Complete PAYE year-end

Step-by-step journey through PAYE year-end tasks, from March planning to final submissions in April. Covers FPS finalisation, P60s, P11Ds, and Class 1A NIC.

Running a Business Updated 15 September 2026

6 milestones references 4 guides

PAYE year-end: your complete guide

The tax year runs from 6 April to 5 April. This journey walks you through everything you need to do to close out the tax year properly and start fresh.

Key dates:

5 April: Tax year ends
19 April: Final FPS deadline
31 May: P60s to employees
6 July: P11D deadline
22 July: Class 1A NIC payment

Plan ahead (March)

Start preparing in March to avoid the April rush:
Submit final FPS (by 19 April)
Your last Full Payment Submission of the tax year must be marked as final:

Submit final FPS

Mark your last FPS as the final submission for the year. Deadline: 19 April.
Final FPS requirements

The final FPS must include the year-end indicator. Most payroll software does this automatically for the last pay period.
A Full Payment Submission (FPS) is the main RTI report that employers must submit to HMRC on or before each payday. It reports all payments made to employees and the deductions taken.

When to submit

On or before each payday (every time you pay employees)

Late submission easement

Within 3 days of payday accepted without penalty (but regular late filing may be challenged)

Year-end deadline

Final FPS must be submitted by 19 April following tax year end

Early submission window

Can submit FPS for next tax year from 6 March

Correction window

14 days after end of tax month to correct errors within same month

Information included in FPS

Employer details: HMRC office number, PAYE reference, Accounts Office reference

Employee details: Name, NI number, tax code, date of birth

Payment details: Gross pay, tax deducted, NI contributions (employee and employer)

Year-to-date figures: Taxable pay to date, total tax to date

Student loan deductions: If applicable, plan type and amount

Statutory payments: SSP, SMP, SPP amounts paid

Starter/leaver information: New employee details or leaving date

Final FPS for tax year

When submitting your last FPS for the tax year (on or before 5 April), you must indicate it is your Final Submission. This replaces the old P35 annual return.

Running payroll - reporting to HMRC (opens in a new tab)
Important: If you have no employees paid in the final tax month but submitted FPS earlier in the year, you must send an EPS to confirm no further payments.
Issue P60s (by 31 May)
Every employee on your payroll on 5 April must receive a P60:
P60 requirements

P60s summarise an employee's pay and deductions for the tax year. They need this for tax returns, mortgage applications, and benefit claims.
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)
- Who gets one: Everyone employed on 5 April
- Format: Paper or electronic (with employee consent)
- Deadline: 31 May following the tax year
- Leavers: Do not get P60s - they have their P45
Report benefits and expenses (by 6 July)

If you provided any benefits in kind or expenses to employees, report them on P11D:

Report benefits on P11D

Submit P11D forms for company cars, private medical insurance, and other benefits. Deadline: 6 July.

Payrolling benefits: If you've registered to payroll benefits, you do not need to report them on P11D - the tax is already deducted through PAYE.
Pay Class 1A NIC (by 22 July)

You must pay employer's National Insurance on benefits in kind:

P11D(b): This summary form declares your total Class 1A NIC liability. Submit alongside your P11D forms.

Verify and reconcile

After completing year-end, verify everything is correct:

Correct year-end errors

Found a mistake? Learn how to correct payroll errors after year-end.

Earlier Year Updates

If you discover errors from previous tax years, you may need to submit corrections.

An Earlier Year Update (EYU) was historically used to correct payroll data from previous tax years. From tax year 2020/21 onwards, the EYU has been replaced by submitting a further FPS with corrected year-to-date figures.

Current method (2020/21 onwards): Submit further FPS with corrected year-to-date figures
Legacy method (pre-2020/21): EYU submission through payroll software
Correction deadline: Generally within 6 years of end of tax year
P60 updates: Issue corrected P60 to employee if figures change

How to correct previous years

For tax years 2020/21 onwards:

Calculate correct figures: Work out what the year-to-date should have been
Submit further FPS: With the corrected year-to-date amounts
Issue corrected P60: If the employee requires updated figures
Notify HMRC if needed: For significant corrections, contact HMRC directly

Common reasons for corrections

Wrong tax code applied throughout the year
Incorrect NI category used
Bonus or pay not reported correctly
Employee discovered to have had other employment
Tax refund due that was not processed

Correcting payroll reports (opens in a new tab)

Common year-end problems

Missed 19 April deadline: Submit ASAP - penalties apply but get progressively worse
Wrong tax codes used: May result in underpaid/overpaid tax - HMRC will adjust next year
Employee left before 5 April: Do not include on P60 - they should have their P45
Benefits not reported: P11D penalties are £100 per 50 employees, per month late

Year-end checklist summary

Task	Deadline	Penalty if late
Final FPS	19 April	£100-£400/month based on employee count
P60s to employees	31 May	£300 per P60
P11D to HMRC	6 July	£100 per 50 employees/month
P11D copies to employees	6 July	£300 per form
Class 1A NIC payment	22 July	Interest + penalties for late payment

PAYE year-end tasks guide

Detailed reference guide for all year-end obligations

Complete PAYE year-end

PAYE year-end: your complete guide

Plan ahead (March)

Submit final FPS (by 19 April)

Submit final FPS

Issue P60s (by 31 May)

Report benefits and expenses (by 6 July)

Report benefits on P11D

Pay Class 1A NIC (by 22 July)

Verify and reconcile

Correct year-end errors

Common year-end problems

Year-end checklist summary

PAYE year-end tasks guide

Related journeys

Monthly PAYE compliance checklist

Fix PAYE problems

Manage your employees