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 Updated 3 November 2026

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:

Last payday of the tax year: Final FPS
5 April: Tax year ends
19 April: Final EPS, if your final report goes on an EPS
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:
1. Check employee details are correct
  
  Verify names, addresses, tax codes, and NI numbers for all employees before final payroll run.
2. Review outstanding corrections
  
  Fix any payroll errors now - much harder after year-end.
3. Confirm software is updated
  
  Ensure payroll software has the new tax year rates ready.
4. Plan final payroll timing
  
  If payday falls near 5 April, plan whether to process before or after year-end.
Submit final FPS (by the last payday)
Send your last Full Payment Submission of the tax year on or before your employees' last payday in that year, and mark it as final:

Submit final FPS

Mark your last FPS as the final submission for the year. Send it on or before the last payday of the tax year.
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 send to HMRC on or before each payday. It reports what you have paid each employee and the deductions you have made.

When to submit

On or before each payday, even if you pay HMRC quarterly

Payday date to enter

Your usual payday, even if you pay earlier or later

Who to include

Everyone you pay, even if they earn less than £96 a week

Late submission

No penalty if every reported payment is within 3 days of payday

Final FPS of the tax year

On or before the last payday of the tax year (5 April)

Earliest for a new tax year

Not before March

Mistakes

Send a corrected FPS as soon as possible

What an FPS contains
Employer information, including your PAYE reference and Accounts Office reference
Employee information for the people you have paid
Pay and deductions, including tax, National Insurance and student loan repayments
National Insurance information
You also report extra information when an FPS includes a new employee, an employee leaves, you start paying someone a workplace pension, an employee changes address, or it is the last report of the tax year.

Reporting after payday
You can send an FPS after payday only in the situations HMRC lists, such as an ad hoc payment outside your regular payroll or a payday that falls on a non-banking day. Put the reason on the FPS, or HMRC may send a penalty warning and a penalty.

Running payroll: reporting to HMRC (FPS) (opens in a new tab)
Important: If you paid no one in the final pay period, forgot to mark your last FPS as final, or your software has no "Final submission for year" field, send your final report on an Employer Payment Summary (EPS) by 19 April instead.
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:

Class 1A NIC rate (2026/27)

15% of the taxable value of benefits

Payment deadline

22 July (electronic) or 19 July (cheque)

Calculation basis

Total from P11D(b) form

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:

Check your PAYE account online

Sign in to HMRC services to verify your submissions match your records.
Reconcile payments made

Ensure PAYE paid matches liability shown in HMRC account.
Keep records for 3 years

Store payroll records, P60 copies, and P11D copies securely.
Note any discrepancies

If HMRC's figures differ, investigate and correct if needed.

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

Final FPS sent after the last payday: Send it as soon as you can with a late reporting reason. HMRC can send a penalty warning or charge a late filing penalty
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: a late P11D(b) costs £100 a month for each block of 50 employees, or part of one

Year-end checklist summary

Task	Deadline	Penalty if late
Final FPS	Last payday of the tax year	£100-£400/month based on employee count
P60s to employees	31 May	£300 per P60
P11D and P11D(b) to HMRC	6 July	P11D(b): £100 per 50 employees a month, plus other penalties
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)

Check employee details are correct

Review outstanding corrections

Confirm software is updated

Plan final payroll timing

Submit final FPS (by the last payday)

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

Check your PAYE account online

Reconcile payments made

Keep records for 3 years

Note any discrepancies

Correct year-end errors

Common year-end problems

Year-end checklist summary

PAYE year-end tasks guide

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