As we approach the end of the 2025/26 payroll tax year, it’s time for businesses and payroll teams to prepare for year-end reporting and ensure a smooth transition into the new tax year. Proper planning now can help avoid costly errors, penalties, and last-minute stress.

Below is a practical overview of what to expect and a helpful checklist for both businesses and clients to follow.

Key Payroll Year-End Dates to Remember
● 5 April 2026 – End of the 2025/26 tax year
● 19 April 2026 – Deadline for final FPS (Full Payment Submission) or EPS (Employer Payment Summary)
● 31 May 2026 – Deadline to provide P60s to employees

Missing these deadlines can result in penalties, so early preparation is essential.

What Changes in the New Tax Year?
While specific updates may vary each year, businesses should be ready for potential changes such as:
● Updated tax codes
● Revised National Insurance thresholds
● Changes to statutory payments (e.g. SMP, SSP)
● Adjustments to minimum wage ratesMake sure your payroll software is updated and compliant for the new tax year.

Payroll Year-End Checklist for Businesses
Use this checklist to ensure everything is completed accurately:

✔ Finalise Payroll Records
● Ensure all pay runs for the year are complete
● Double-check employee earnings, tax, and NI contributions
● Verify that all leavers have been processed correctly

✔ Submit Final Reports to HMRC
● Mark your final FPS submission as “final for the year”
● Submit an EPS if required (e.g. for reclaiming statutory payments)

✔ Issue Employee Documents
● Provide P60s to all employees still employed on 5 April
● Ensure employee details (name, address, NI number) are accurate

✔ Review Benefits and Expenses
● Prepare for P11D reporting if applicable
● Check benefits-in-kind records are complete and accurate

✔ Reconcile Payroll Data
● Compare payroll reports with HMRC liabilities
● Resolve any discrepancies before year-end submission

✔ Backup Payroll Data
● Securely store a backup of all payroll records for compliance

Checklist for Clients
If you’re working with a payroll provider or accountant, here’s what you should provide and confirm:

✔ Employee Information
● Confirm all employee details are up to date
● Notify of any changes (addresses, names, roles)

✔ Final Pay Adjustments
● Submit any outstanding bonuses, commissions, or expenses
● Confirm final payments for leavers

✔ Benefits & Expenses
● Provide details of any benefits provided during the year
● Confirm company cars, medical insurance, or other perks

✔ Approval of Final Payroll
● Review and approve final payroll reports before submission

✔ Prepare for New Tax Year
● Confirm any salary changes effective from April
● Communicate new starters or expected changes Tips for a Smooth Transition
● Start early—don’t leave submissions until the deadline
● Use up-to-date payroll software
● Maintain clear communication between businesses and payroll providers
● Keep detailed records for compliance and audits

Need Support?
Payroll year-end can be complex, but you don’t have to manage it alone. If you need assistance reviewing your payroll, submitting final reports, or preparing for the new tax year, our team is here to help.

Get in touch with us today to ensure your payroll is compliant, accurate, and ready for the year ahead.