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The tax year ends on the 5th of April each year, starting again on the 6th of April. It's essential to keep track of key deadlines throughout the tax year, with some of the most pivotal ones arriving at the beginning or end.
Here is what the end of the tax year looks like in Pento:
End of Year key tasks
Submit the Final Full Payment Submission (FPS)
After you process your final pay run, Pento will submit the FPS to HMRC. This FPS will have an indicator that it is the final submission for the year, which notifies HMRC that no more files need to be sent.
Submit the Final Employer Payment Submission (EPS)
The EPS needs to be submitted if there are any payments to be recovered, such as statutory payments or apprenticeship levy. Pento sends the final EPS on the 14th of April, also with an indication that it is the final submission of the year.
Make a Pay As You Earn (PAYE) Payment
Pento makes the payment on the 18th of April, with automated payments.
If you’re making your PAYE Payment manually, it needs to be done by the 19th if paying by cheque, while electronic payments should be made before the 22nd.
As we tie up the final pieces of end-of-tax-year duties, you will be able to head to your employees' profiles and see P60s.
Your staff will be delighted to receive their P60s soon. But don't worry; Pento also takes care of this for you! We will automatically send out P60s between the 20th-22nd of April to your employees' inboxes.
Check your settings for Directors NI calculations
Now that you’re ready to start a new tax year, you might want to review or amend the NI Calculation method for your Directors. Here’s a link to the HMRC website to help answer any questions you might have.
Submit P11Ds and P11D(b) to HMRC
A P11D is an important form that employers must submit to HMRC on behalf of every employee. It includes details of taxable benefits like company cars, accommodation, or other benefits provided which were not reported previously on payroll or via a PAYE Settlement Agreement (PSA). Here are a couple of things you might want to consider:
- Send the document to your employees so they can check that everything looks accurate before you submit it to HMRC.
- Pro tip: For ease of record keeping, it is recommended that you keep a copy of the P11Ds.
Deadline: 6th July
A P11D(b) is a form used to report the amount of Class1A National Insurance Contributions due on certain benefits that have been paid to employees. This form is submitted per company on a yearly basis, and it outlines the total value of benefits that are subject to Class 1A National Insurance and the sum due from the employer.
Deadline: If you're paying by cheque, it needs to be done by 19th July, and electronic payments should be made before 22nd July. The P11D(b) payment needs to be done outside of Pento, directly to HMRC.
Preparing for the new tax year
Rates and thresholds
For the new tax year, all rates and thresholds will be automatically updated. We will refresh all calculations in the April payroll drafts, so you may notice some changes in the amounts.
Check Eligibility to Claim Employment Allowance
The employment allowance is a yearly perk that enables employers to reduce their Class 1A National Insurance contributions. To be eligible to claim this perk, certain criteria must be met, such as:
- Being a business or charity (including community amateur sports clubs) and if your employer’s Class 1 NI liabilities were less than £100,000 in the previous tax year.
- Making sure your business is not linked to any other organisation. Connected companies and Employment Allowance: further guidance for employers and their agents
If you qualify, you can enable this by going to Settings > Allowances > Employment Allowance.
Set up the Apprenticeship Levy Allowance
You might already know that all companies have to pay apprenticeship levy – but did you know you might be able to use a £15,000 allowance to offset this? This means that the levy is only paid by companies with an annual pay bill of over £3 million.
If you’re a connected company, the same regulations regarding employment allowance must be applied, so you will need to split the allowance between the companies.
To set up the Apprenticeship Levy, you can read this article Setting up Apprenticeship Levy.
Below are some important dates to remember to ensure you complete your payroll year-end successfully:
- 5th April – End of tax year
- 19th April – End of tax year filing deadline
- 31st May – Deadline to provide employees with P60s
- 6th July – Deadline to report Benefits (P11D(b))
- 6th April – Beginning of tax year