It is always important that you are compliant with payroll legislation, but particularly so as an old tax year ends and a new one begins. This is because most legislation changes are timed to take place at the start of the new tax year, which means a lot of work for payroll teams between now and 6th April. To further complicate things, some legislation starts on 1st April instead, so it’s easy to get caught out if you’re not careful!
In this blog we identify the actions you need to take to close out this tax year.
Submit Final Full Payment Submission (FPS)
Your final FPS needs to be submitted on or before the final payday of the year. Here at Payroll Junction we automate this process to make it easier, but if you haven’t outsourced your payroll over to us yet you’ll need to action this manually.
Submit Final P46 (Car) Return
This form is used if you have provided an employee with a company car, providing that you are not payrolling company car benefits (in which case the information is already in your FPS and the form does not need to be completed). Electronic submissions are required via your Government Gateway account by 5th April, or paper submission by 3rd May 2024.
Submit Final Employer Payment Summary (EPS)
If you have apprenticeship levy to pay, statutory parental pay recovery, or CIS deductions to report in March, these need to be submitted on your final EPS by 19th April 2024. This will be your final Real Time Information (RTI) submission for the tax year, and you’ll need to indicate that in the correct place on the form.
Issue Employee P60s
Any current employees should receive a P60 from you by 31st May 2024, detailing their earnings for this tax year. Employees who leave your employment before the end of the tax year will have received a P45 instead.
Submit & Issue your P11Ds and P11D(b)
If you are providing benefits to employees that are not included as payrolled benefits in kind you need to submit these on P11Ds to HMRC and issue them to employees by 6th July 2024. Whether or not you are payrolling benefits, you will also need to submit a P11D(b) which shows the benefit values & Class 1A National Insurance Contribution due. You will then need to pay your Class 1A NIC electronically by 22nd July 2024 (or 19th July if sending a cheque).
Apply for and submit your PAYE Settlement Agreement (PSA)
Some companies who provide irregular or minor benefits prefer to report these on a PAYE Settlement Agreement (PSA) as an alternative to payrolling them or reporting on P11Ds. You need to apply for your PSA using a PSA1 form by 5th July 2024. Any benefits provided to employees before HMRC agrees your PSA should be reported on P11Ds and P11D(b). Your PSA form needs to be completed and the relevant PAYE and Class 1B National Insurance Contribution paid by 22nd October 2024 (or 19th October if sending a cheque).
Submit your Gender Pay Gap Information
If you have over 250 employees you are required to report and publish gender pay gap information on either 30th March (public authority employers) or 5th April (private & voluntary employers).
Clearly there is a lot to think about when staying compliant at the end of the tax year. The bad news is that there is also a whole lot more compliance you have to think about at the start of the new one! We’ll be posting another blog to help you with this next month.
If you’d rather just avoid all the drama, and a potential fine, why not outsource your payroll to us here at Payroll Junction? This time of year is a great time to switch over to us, so get a quote today!