Payroll and the new financial year

With the end of the financial year fast approaching, now is the time for payroll teams to plan ahead for the end of one financial year and the start of another.

Here, we look to the year ahead, key dates and changes that payroll teams will want to consider.

Key dates

• 5 April – tax year ends. 
• Before 6 April   – update all employee payroll records. 
• 6 April – the new tax year starts.
• 19 April – deadline for final submission of the 2023/24 tax year data.
• 22 April – deadline for month 12 PAYE data.
• By 31 May – ensure employees receive their P60s. 
• By 6 July – report on expenses and benefits.
• 6 July – deadline to submit P11D forms. 
• 22 July – payment of class 1A National Insurance contributions on Benefits in Kind.

Payroll checklist

Here is our list of what to check ahead of the new financial year.

When does your payroll end?

It is not always as straightforward as often assumed, particularly where the company year-end does not align with the tax year-end.

Starters and leavers

Make sure all employee records are up to date and that those who have left or joined the organisation have been correctly processed. 

Full Payment Submission (FPS)

Once the final pay run for the tax year has been made, payroll teams will need to submit their FPS and, where needed, an Employment Payment Summary.

P60s

Once the FPS is made, employees must receive their P60 summarising pay and deductions for the tax year. P60s are also required for those employed under IR60.

National Minimum Wage and National Living Wage

Ensure payroll for the new tax year reflects changes to the National Minimum Wage and National Living Wage.

P9X and start a new payroll

P9X is a document published every year that explains the tax codes employers must change and carry forward into the new tax year. Whilst this is often built into software providers, it should still be checked. Only then can the new payroll year be opened. 

Time to change providers?

As the new tax year approaches, now is the perfect time to change payroll providers.

With the increasing complexity and compliance obligations that are now associated with payroll, having the power of an accountancy practice with the very best technology platforms can leave you confident that your payroll is in the very best hands.

Whilst value of money will be important, it is the level of customer service, the ease of use and the scalability that Kreston Reeves offers that stands the firm apart.

To understand how we can support your business, contact our payroll team here.