If you have employees and run a payroll scheme then there are a couple of extra requirements that need to be completed at the end of the tax year.
I will take you through the things you need to do.
1. Check when your payroll year ends
Does your payroll year end on week 52 or week 53?
If some (or all) of your employees are paid weekly, fortnightly or on a 4 weekly basis then if your normal pay date doesn’t fall on 5th April then you don’t have a week 53. If it does fall on 5th April, then you do have a week 53.
If you have a payroll run that falls in week 53 then you will need to process this payment run as normal before running year end procedures.
If you pay your employees monthly this doesn’t need to be considered so you can process your payroll for March as normal.
2. Run payroll for March/week 53 as normal
3. Check for leavers
Have you had any employees leave during the leave? You need to make sure they have been processed as leavers.
4. Send your final Full Payments Submission (FPS)
Once the above has been done you can now send your final FPS to HMRC.
This will be the same process as your normal monthly submissions.
5. Process your year end
Once you have submitted the final FPS for the tax year your payroll software should then prompt you to process payroll year end and send your end of year submission to HMRC.
6. Provide P60s to your employees
All of your employees who are working for you at 5th April need to receive a P60 from you by 31st May.
The P60 summarises their pay and deductions for the year.
These should be able to be generated using your payroll software.
TOP TIP: Most payroll software providers have produced specific how to guides and videos for preparing payroll year end so it would definitely be worth having a search for these to help guide you through the specific process for your payroll software.
7. Produce forms P11D and P11D(b) to report benefits and expenses
If you provide your employees with any benefits such as company vehicles and private medical insurance then you may need to prepare and submit forms P11D and P11D(b) to HMRC.
Key payroll dates employers need to be aware of:
5th April: the 2021/22 tax year ends
6th April: the 2022/23 tax year starts
From 6th April:
Update your employee records
Obtain the 2022/23 PAYE codes for all employees using your HMRC online PAYE account
It is likely that your payroll software will have an update released to include the 2022/23 tax rates and allowances
19th April: Deadline for the final submission of the 2021/22 tax year
31st May: Employees must have been provided with their 2021/22 P60
6th July: Deadline for submitting forms P11D and P11D(b) to HMRC
19th July: Payment deadline for any class 1a National Insurance payable
As always, if you have any questions please feel free to contact me.