As the PAYE tax year comes to a close, employers and payroll professionals must ensure they complete various tasks to comply with HM Revenue and Customs (HMRC) requirements. In this article, we will outline the key tasks and deadlines to help you navigate the PAYE tax year end process.
The first step is to submit the final Full Payment Submission (FPS) on or before the last payday of the tax year. This report provides HMRC with the necessary information to update employee records and process any remaining payments.
In certain circumstances, you may need to send a final report in an EPS instead of an FPS. This typically applies when you have no employees or have made no payments to employees in the tax year.
If you need to correct payroll data, you can send an FPS with year-to-date figures after 20 April. This is essential to ensure accurate records and avoid potential penalties.
For employees paid weekly, fortnightly, or every 4 weeks, you may need to make additional payments, known as 'Week 53' payments. These payments must be reported in the final FPS to ensure accurate tax deductions.
It is essential to review your final FPS for errors, including wrong payments, deductions, and payment dates. Correcting mistakes promptly will help avoid potential issues with HMRC and ensure employees receive accurate tax codes.
After submitting the final FPS, you will need to provide employees with a P60 form, which outlines their total earnings and tax deductions for the tax year. HMRC may also issue a P800 form to employees, which details any tax owed or repayments due.
As the PAYE tax year ends, it's essential to prepare for the new tax year by:
By following these steps and meeting the necessary deadlines, you can ensure a smooth transition to the new tax year and avoid potential penalties or issues with HMRC.
The PAYE tax year end process requires careful attention to detail and timely completion of various tasks. By understanding the key themes and deadlines outlined in this article, you can ensure compliance with HMRC requirements and provide accurate information to your employees.
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