Payroll Year End: a Top 5 Checklist for Businesses this April

The long month of March has drawn to a close and it’s P60s at the ready, which can only mean one thing: the Payroll Year End has come back around. With 5 April (the last day of the 2018/2019 tax year) fast approaching, finance departments across the country will be preparing to share their final payroll reports with HMRC. If you’ve yet to address this within your own payroll department (whether in-house or outsourced), there’s still time to ensure your business’s Year End payroll is processed without a fuss. The deadline for final submissions is 19 April, 2019. With that in mind, explore our top 5 tips on how to sail into the new financial year with nothing but a spring in your step.

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Finance departments across the country will be preparing to share their final payroll reports with HMRC

When does your payroll finish?

 As obvious as this may sound, make a note of the week your payroll ends before you go any further. For example, rather than week 52, it may be that your company Year End spills into a new week – week 53; here’s how to work it out. If your employees are paid monthly, then your Year End will fall in week 52. Or, if your workforce is paid every week, fortnight, or every four weeks, your business Year End will also fall in this week. If, however, the latter system of payments mean that your normal pay date lands on 5 April, 52 turns into 53: your new payroll Year End.

 P60 preparation

 Your workforce may have grown over the past year, so be sure to check whether you have enough P60 forms for each and every team member this spring. A P60 form details both a summary of an employee’s pay and any tax contributions made across the previous financial year, so it’s vital these are prioritised come Year End. P60 forms should be handed to your staff by no later than 31 May. If you’re running low, be sure to stock up on HMRC-approved forms to meet the deadline (or if you’re super organised, for this time next year).

P60 forms should be handed to your staff by no later than 31 May

Moving onto pastures new

While your team may have expanded, it’s also important to take all (if any) job leavers into account when processing your Year End documents. When sharing your Full Payment Submission (FPS) and Employer Payment Summary (EPS) documentation, any ex-workers will need to be marked as such. While an FPS contains your employees’ payment information and any new starters/leavers, an EPS is completed as part of an RTI (real time information) Pay ID for claiming other payments, or reclaiming deductions such as employee allowance.

Submitting your final FPS/EPS 

Now that you have your payroll Year End date to hand (whether this falls in week 52 or 53), and any recent leavers processed, you can finally submit your FPS and EPS documents using your payroll software. You’ll need to send this documentation on or before your employees’ pay day, (though there are late-submission exceptions) after which you can then view the report via your HMRC account from 12 April. Your FPS and/or EPS documents will need to be finalised before you can fully action your business’s Year End payroll.

 Your FPS and/or EPS documents will need to be finalised before you can fully action your business’s Year End payroll.

Processing your payroll Year End 

Using your payroll software, be sure to check your company details, the processing date (which should be set for 5 April), and the tax year (2018/2019). Internet submissions should be actioned by no later than 19 April. Once this is complete, you can focus on handing out those all-important P60 forms by the end of May, and ready your business for what will undoubtedly be a new year full of changes – from new tax rates to an increase in in minimum pension contributions

 

With changes afoot for 2019, there’s never been a better time to spring clean your business payroll activity. Adams Moore offers a comprehensive payroll service for SMEs of all sizes – whether you’re a team of one or 500 employees. For flexible management plans and always-on support over the telephone, get in touch with our dedicated team to find out more.