As an employer you will need to ensure that you have completed your payroll year end by 5th April 2023. We have broken down the year end payroll process for you so that you can make sure you have completed all tasks and submitted your returns to the HMRC on time.
What is payroll Year end?
The payroll calendar year runs from 6th April 2022 to the 5th April 2023 and is split into pay periods depending on how often you choose to pay your employees. At the end of the tax year, you will need to make sure that you submit your final returns to the HMRC and when this is completed you can issue your employees with their P60s.
Payroll Dates and Deadlines to remember:
Full payment Submission (FPS) – Deadline – On or before payday
When you have completed the final payroll for tax year 2022-23, you will need to make sure you send your FPS to the HMRC and mark this as your final submission of the year.
It is worth noting that if you process payroll for more than one frequency such as a monthly and a weekly payroll, you will need to select the “final submission of the year” on the last submission you send.
Employer payment Summary (EPS) – Deadline – 19th of following month:
You should send an EPS to apply any reduction to PAYE such as Statutory pay. You can send a final EPS instead of an FPS if you forgot to put yes in “final submission of the year” on the FPS or if there were no payments in the final period of the year.
Issue employee P60s – Deadline 31st May:
You will need to ensure that the P60s are issued to employees no later than the deadline. These can be issued electronically or in hardcopy and this form summarises the employees pay and deductions for the year. However, it is useful to note only an employee who is still employed by you on the last day of the tax year (5th April) will receive a P60. If they left before this date, they should get a P45.
Issue P11ds – Deadline 6th July:
You must report expenses and benefits to the HMRC and issue the P11ds to your employees. Payment of class 1A National insurance are due on the 22nd July.
Starting the new tax year:
Once you have completed payroll year end you will need to make sure you are ready for the start of the new year.
Update employee records:
You will need to ensure that all your employees are on the correct tax code. Any employee on a W1/M1 tax code will need to be amended to a cumulative code, if the HMRC have sent a P9 form for any employees their tax code will need to be amended and if there is an uplift to the current personal allowances this will need to be reflected for any employees for an L suffix code.
Employment allowance:
You will need to check if you are eligible for the employment allowance. The criteria state’s that an employer whose class 1A National insurance liability is less than £100,000 in the previous tax year is entitled to claim as long as they are not part of a group or have another PAYE scheme that is already claiming the allowance. If you only have one employee and that employee is a director, you are not eligible for the employment allowance.
Apprenticeship Levy:
If you are an employer and have an annual pay bill of more the £3 million you must pay the apprenticeship Levy. This is reported through your Employer payment summary (EPS) and is 0.5%.
If you need any advice, please get in touch with the Menzies payroll team. Our team of experts will be able to help manage your payrolls and provide advice and guidance when you need it.