How to manage payroll year end: actions and deadlines explained

10 January 2023

For payroll professionals the calendar is always busy, however never more so than at the payroll year end. There are always multiple tasks to think of and important deadlines to hit. Use our handy guide below to ensure you are fully prepared and ready to have a successful year end.

What employers need to do When employers need to do it
Confirm when payroll ends
Employers who are running a monthly payroll won’t have a week 52 and can process as usual. 

However, if a payroll of a different pay cycle length is due to pay employees on the tax year end date of 5 April 2022 may need to prepare for a week 53 payroll run. This run will need to be completed prior to processing year end. 
5 April – the 2022/23 tax year ends on this date.

6 April – the new 2023/24 tax year begins.
Check for missed leavers
Employers must process any leavers ahead of their payroll year-end submission. This relates to anyone who’s left the business since the last payroll year-end date.
Before 19 April 2023, the final deadline for 2022/23 final submissions.
Employers may need to remember to cleardown all the Year to Date (YTD) balances from the previous tax year if their payroll software doesn’t automatically.
From 6 April – update employee payroll records and update payroll software to the new year. Prior to first pay run of the new 2023/24 tax year.
Final Submission
Either the final Full Payment Submission (FPS) or final Employer Payment Summary (EPS) submission must be marked with the final submission of the year indicator to confirm to HMRC to close that tax year. If changes are made after this, employers must include another final indicator.

Monthly penalties may apply if you do not send the right number of FPS/EPS forms, or if they’re late. 
19 April – deadline for the final submission of the 2022/23 tax year.

From 20 April 2023, to make amendments to the tax year ending 5 April 2023 you will need to submit an Earlier Year FPS file (EYFPS).
Produce P60s
All employees who were still working for the organisation on 5 April 2023 need to receive a P60.
By 31 May – all employees must have been given their P60.  
Complete P11D process
Employers need to report employee expenses and benefits to HMRC. If you are not formally payrolling any benefits via the payroll then a P11d must be submitted to HMRC, and a P11d form provided to employees.
By 6 July – Submit all P11ds to HMRC by 6 July 2023.  
 Make payment of Class 1A NIC contributions to HMRC By 19 July – pay Class 1A National Insurance contributions (NIC) on P11D benefits to HMRC.

Whilst the above tasks are being completed, end of year is also an opportunity to look at wider payroll and review potential efficiencies. Read our article on good payroll housekeeping to find out how to ensure the payroll is working as well as it can.

For more information or to get more help from RSM’s outsourced payroll experts, please contact Simon Balaam.