How to Navigate Payroll Year End (PYE) for a Smooth FY19/20
Ready to roll into FY19/20? We’ve got together all the key dates and facts for an easy-peasy Payroll Year End.
Key Dates to Remember
On or before your employees’ payday: Send your final FPS payroll report of the year
From 6th April: Update employee payroll records
From 6th April: Ensure your payroll software is updated
By 31st May: Give your current employees a P60
By 6th July: Report employee expenses and benefits if they aren’t being processed through payroll
By 22nd July: Pay Class 1A NIC on P11D benefits
What are my key duties?
As an employer running payroll, you need to:
- Report to HM Revenue and Customs (HMRC) on the previous tax year (which ends on the 5th April)
- Give your employees a P60
- Prepare for the new tax year, which starts on 6th April
Claiming Small Employer Relief
If you qualify as a small employer (with a liability for National Insurance Contributions that was less than £46,350 in the last tax year) then you should be able to reclaim some or all of any statutory maternity pay, statutory paternity pay, statutory adoption pay and shared parental pay you obliged to pay.
Steps to Make Sure You’re Prepared
Check you’ve registered with Government Gateway and that your account is still active.
Prepare for a week 53 – if you run a weekly payroll (including fortnightly or four-weekly) then you may have to complete an extra pay run. This will happen if you’re due to pay employees on the tax year end date, 5th April. Find out more about Week 53 payments in our free Guide to PYE.
Process any leavers ahead of your Payroll Year End submission, this will be for anyone who’s left your business since the last Payroll Year End date.
Process Your Final Pay Run
Complete your final pay run of the tax year – this will involve running your last Full Payment Submission of the tax year.
Do I need to send an EPS?
You’ll need to send an EPS if you didn’t pay any employees during your final pay period of the tax year, or if you submit your final FPS early and didn’t pay anyone for one or more full tax months.
You may also need to file an EPS if you’re submitting statutory payments or apprenticeship levies.
Something’s Gone Wrong…
Made a mistake on your final FPS? Don’t worry, it’s an easy fix, so long as you correct your mistake and submit a new, correct form – providing you do it by the right date.
If the 19th April has already passed, send an Earlier Year Update – showing the difference between the wrong FPS numbers and the correct year-to-date ones. You don’t need to give the year-to-date amounts.
If you’ve included the wrong payment date, send an additional FPS with the correct date by 5th April.
Oops, I’ve Missed My Deadline…
If it’s before 19th April, send and FPS and EPS if necessary. After the 19th, you’ll have to send an Earlier Year Update that gives the difference between your last submitted report and the final figures for the tax year.
You may get a monthly penalty between £100 and £400 if you don’t send the right number of FPS/EPS forms, or if they’re late.
You need to provide all current employees with a P60 by the 31st May. The P60 is a summary of the employee’s total pay and deductions for that tax year.
The P60 form is your employees End of Year Certificate. They’ll need it as proof of income for loans or mortgages, and they might also need it for claiming back overpaid tax and applying for any tax credits.
P60s should show the employee’s total earnings from the previous tax year.
I’ve Given My Employees Benefits…What Do I Do Now?
If you’ve given your employees benefits or expenses in the tax year, you’ll need to complete extra forms and make sure they’re reported by 6th July.
P9D: If your employee has earned less than £8,500 in the tax year.
P11D: If they earn more, or the benefits/expenses were for a company director. You’ll need to submit this if you don’t payroll your benefits.
You’ll also be required to send a P11D(b) form that shows the amount of Class 1A NICs due from all P11D forms. If HMRC send you a P11D(b) form, you’ll have to complete it and send it back even if you haven’t completed a P11D.
Get your key dates for benefits submissions here.
Don’t Fancy Running Payroll Year End?
Then we would like to introduce you to the IRIS Managed Payroll Service, a bespoke, cost-effective and stress-free outsourced payroll solution that keeps you in charge of your payroll run – without having to lift a finger.
Regardless of whether you’ve never run PYE before, or at this point you’re a seasoned professional, our Payroll Year End Guide (link) has all the key dates, tips and tricks you need to calmly enter the next financial year.
Want a Little Extra Support?
Our range of Year-End training options contain all the essential product and legislation training you need, with solutions to suit all budgets and a combination of on-demand video, live webinars and face-to-face classroom sessions, we’ve got you covered.
To see all the available options, visit our Payroll Year End website here, or alternatively, give our Payroll Team a call on 0333 455 1463.