Payroll year-end is the process of finalising and submitting all payroll information to HMRC for the tax year ending 5 April, then preparing payroll systems for the new tax year starting on 6 April.
What is payroll year-end?
Payroll year-end is the annual process where employers close off the previous tax year by submitting their final Full Payment Submission (FPS) and, if needed, an Employer Payment Summary (EPS) to HMRC. As part of this process, employers must issue P60s to all employees who were on their payroll on 5 April.
Payroll year-end also involves updating payroll settings for the new tax year — including new tax codes, thresholds and statutory rates — to ensure accurate and compliant payroll from 6 April onwards.
Things to know
- The UK tax year ends on 5 April and starts again on 6 April
- Employers must submit their final FPS/EPS to HMRC
- P60s must be issued to all employees employed on 5 April
- Payroll systems must be updated with new tax codes and thresholds
- Accurate year‑end processing helps ensure compliance and avoid penalties
FAQs
What needs to be submitted at payroll year-end?
A final FPS, and an EPS if adjustments are required.
Who receives a P60?
All employees who are on the payroll on 5 April.
Do tax codes change at payroll year-end?
Yes. HMRC issues updated tax codes for the new tax year, which employers must apply.
When should payroll year-end be completed?
As soon as possible after the final pay run of the tax year, and no later than HMRC’s deadlines.
Does payroll year-end affect the next pay run?
Yes. Payroll must be updated with new tax rates and codes before the first pay run of the new tax year.
