Payroll Year End

With everything else going on in the world, there are still the usual payroll year end requirements for filing and reporting for any business that runs a payroll.

 

Payroll Year End Steps

 

Step 1: Depending on what software you use, you may be required to install an update. If it is required, your software should prompt you to do this. For payrolls on Xero this step is not necessary.

 

Step 2: Complete your final payroll in the normal way. Issue any P45s due. Ensure when submitting RTI, you include the leavers.

 

Step 3: If your software requires you to take back ups, take one now.

 

Step 4: Submit the final year submission (in addition to submitting the RTI submission) for tax year 2019/20 (this needs to include everybody on payroll including employees who have not been paid in March and any leavers during the year 2019/20). The deadline for this submission is 19 April 2020.

 

Step 5: Produce P60’s. The deadline for issuing P60s to employees is 31 May 2020.

 

Step 6: Get ready for the new tax year. New payroll date should be 6 April onwards. Update tax codes, although this year there is no uplift to the tax codes as the personal allowance remains at £12500, but you will need to remove the W1/M1 flags. In Sage, this is done through global changes.  

 

Step 7: Apply for Employment Allowance if appropriate (only if the Employers National Insurance liability for 2019/20 is less than £100,000 and not for a single director)

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Step 8: Apply P9 notices from HMRC

 

Step 9: You are now ready to run your April payroll

 

Key dates to remember:

  • 5 April tax year ends
  • 6 April new tax year starts
  • 19 April deadline for final year submission
  • 31 May staff who are employment on 5 April must have their P60s
  • 6 July deadline to submit forms (P11D)
  • 19 July payment of class 1A NIC  must be with HMRC

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