With the payroll year-end fast approaching, you must ensure that your business is complying with the necessary payroll obligations.
Below we have outlined some key dates and tasks that need to be completed.
The key dates are as follows:
5 April – 2019/20 tax year ends
6 April – 2020/21 tax year begins
6 April – you need to update your employee payroll records and your payroll software
19 April – deadline for final submission of 2019/20 tax year
31 May – your employees need to receive their P60s by this date
6 July – expense and benefits need to be reported by this date (you can do this through your payroll software)
6 July – deadline for submission of your P11D and P11D (b) forms
19 July – payment of Class 1A National Insurance Contributions must be with HM Revenue & Customs (HMRC)
The tasks to complete are as follows:
- Report on the previous tax year
The submission date is 19 April and it must be reported to HMRC.
- Check when your payroll ends: week 52 or 53?
If your employees are paid monthly – you can process your payroll as normal.
If some or all of your employees are paid weekly, every two weeks, or every four weeks and your normal pay date does not fall on 5 April.
If some or all of your employees are paid weekly, every two weeks, or every four weeks and your normal pay date does fall on 4 or 5 April. Then the payroll must be completed in the usual process.
- Prepare P60 forms
P60s are important documents that summarise an employee’s pay and deductions for the tax year. Employees must receive their P60s by 31 May.
To prepare for this, you need to ensure you have enough P60s forms. If you don’t, it is advised to set aside time to purchase forms.
But, remember you can use online P60s as well. This could help make your business more efficient and save money!
- Process leavers
Employees that have left need to be processed as leavers. This must be done before you submit your FPS, and EPS if needed.
- Final FPS and EPs
Once the above tasks are completed, the next step is to send your final Full Payments Submission (FPS) and Employer Payment Summary (EPS).
You need to process your final pay period, and then submit your last FPS and EPS as normal (for your final pay period only).
- Process payroll year-end
Your processing date needs to be set for 5 April. This can be done using your payroll software – where you can also check for future reference.
When this is done, you can process your final year-end through internet submission. The deadline is 19 April.
- Produce your P60s
Employees must receive their P60s by 31 May.
Ensuring you comply with the necessary payroll obligations can be a confusing and time-consuming task. For more information and advice on how we could help you with the process, please contact our expert team today.