Year end payroll

by | Mar 17, 2022

As we are just a matter of days away from yet another tax year end which requires employers that look after their own payroll to complete a number of filing tasks in this blog post we take a look at the payroll filing obligations a business is required to meet for 2021/2022.

Send your year end payment report to HMRC

On or before your employees last pay day (before the end of the tax year 5 April 2022) send your final Full Payment Submission (FPS).

Update your employee payroll records

For each employee working for you on 6 April, you will need to:

  • prepare a payroll record
  • identify the correct tax code to use in the new tax year
  • enter their tax code in your payroll software

You should include in your payroll:

  • all employees you pay in the tax year, no matter how much you pay them
  • any employee who has worked for you in the current tax year (since 6 April) even if they have already left

Update your payroll software – follow the instructions issued by your payroll software provider.

If you are using a recent version of HMRC’s Basic PAYE Tools (version 14.2.14330.88 or later) should update automatically.

Give your employees a P60

In order to fulfil all your year end payroll obligations you must give all employees who were working for you on the last day of the present tax year, 5 April 2022, a copy of their pay and tax details, using form P60. You must do this on or before 31 May 2022.

Payroll report expenses and benefits

Use your payroll software to report expenses and benefits – if it has this feature – this task must be completed on or before 6 July 2022.

The total benefits provided will be the basis of any Class 1A National Insurance Contributions due for 2021-22. This must be paid to HMRC by 22 July 2022 (or the 19 July 2022 if you send payment by post).

If you require assistance with any year end payroll matters, we can help.  You can contact us via our contact page or call us on 020 7330 0000.

Furthermore,  as we are about to start a new tax year this may be an opportune moment to outsource your payroll, please call if you would like a quote.

 

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