If you are looking for a clear payroll year end checklist, start with the essentials: complete your final payroll reporting for the tax year ending on 5 April, make sure your final submission is correctly flagged to HMRC, issue P60s to relevant employees by 31 May, update payroll records from 6 April and keep those records for the required period. Getting these steps right reduces the risk of avoidable HMRC issues and makes the new tax year much easier to run.
For many employers, payroll year-end feels more complicated than it really is. The challenge is usually not the number of tasks but the timing. A missed marker on the final submission, an overlooked leaver detail or a delayed P60 can create unnecessary admin later. That is why a practical sequence matters.
This guide sets out a usable payroll year end checklist for UK employers and small business owners. It is designed for directors, growing businesses and employers who want a straightforward view of what HMRC expects. Where exact deadlines or reporting rules are mentioned, they are based only on current official HMRC guidance.
What does payroll year-end mean for UK employers?
Payroll year-end is the process of closing off payroll for the tax year that ends on 5 April and getting ready for the new tax year that starts on 6 April. HMRC states that employers need to report on the previous tax year, which ends on 5 April and prepare for the new tax year starting on 6 April. You can check HMRC’s annual reporting guidance here: https://www.gov.uk/payroll-annual-reporting.
In practical terms, that means reviewing your final pay run or pay runs for the year, submitting the right information through RTI, making sure year-end indicators are correct and dealing with employee documents such as P60s. It is also the point where good record keeping matters most, because small errors tend to show up when you are moving from one tax year to the next.
Payroll year end checklist: the key steps in order
Below is a practical order of work for most employers.
1. Confirm your final payday or paydays for the tax year
Your year-end process starts with knowing which payment date falls last in the tax year. HMRC’s reporting is based on the tax year ending on 5 April, so your final submission needs to match the final payday that belongs to that tax year.
If you run weekly, fortnightly, four-weekly or monthly payrolls, the dates can catch people out. Before filing anything, check that the relevant pay date really is the last one for the tax year you are closing.
2. Send the final payroll report on or before payday
HMRC says the final payroll report of the year should be sent on or before employees’ payday. This sits within the normal RTI process, but it is especially important at year-end because it forms the basis of what HMRC treats as your final payroll data for that tax year. See HMRC’s annual reporting page: https://www.gov.uk/payroll-annual-reporting.
Before you submit, check that employee details are up to date and that the pay period you are reporting is the correct one. If there are any unresolved payroll errors, it is usually better to identify them before the final submission goes in rather than trying to untangle them later.
3. Mark the final submission correctly
This is one of the most commonly missed year-end steps. HMRC says the final FPS or EPS for the tax year should be marked with Final submission for year = Yes. If you are closing the PAYE scheme, HMRC says you should instead use Ceased indicator = Yes and complete the cease date. The official reporting guidance is here: https://www.gov.uk/guidance/what-payroll-information-to-report-to-hmrc.
That marker tells HMRC that this is the last submission for the tax year. If it is missing, HMRC may not recognise that your year-end reporting is complete, which can lead to confusion, follow-up queries or mismatches in their records.
4. Check whether you need an EPS as part of year-end reporting
Depending on how your payroll is set up and what needs to be reported, some employers may also need to consider whether an EPS is required as part of the final reporting process. The point here is not to submit extra forms unnecessarily, but to make sure your year-end reporting reflects what HMRC expects for your payroll circumstances.
Because different payroll setups can produce different reporting requirements, this is an area worth checking carefully in your payroll software or with your adviser before year-end is finalised.
5. Issue P60s to relevant employees by the deadline
HMRC says employees must be given a P60 by 31 May. You can verify that requirement on HMRC’s annual reporting page: https://www.gov.uk/payroll-annual-reporting.
A P60 summarises pay and deductions for the year for employees who are still employed by you at the end of the tax year. Employers should not leave this until the last minute. Build in time to check payroll records before P60s are generated and distributed, especially if there have been pay adjustments close to year-end.
6. Update payroll records from 6 April
HMRC’s annual reporting guidance says employee payroll records should be updated from 6 April. See: https://www.gov.uk/payroll-annual-reporting.
This is the handover point into the new tax year. In practice, that means making sure your payroll system has rolled forward properly and that the records you rely on for the new year start from the correct basis. If your software has tax year update functions, do not assume they have run correctly without checking.
7. Keep payroll records for the required period
HMRC says payroll records must be kept for 3 years from the end of the tax year they relate to. Official guidance: https://www.gov.uk/paye-for-employers/keeping-records.
Year-end is a good time to review your record storage process. Employers often focus on submitting forms and forget the evidence behind them. If HMRC asks questions later, complete and accessible payroll records make a major difference.
A practical year-end review before you press submit
Even where HMRC’s deadlines are clear, a smooth year-end usually depends on a short internal review. Before making your final submission, consider checking:
- Whether all employee details are current and consistent across payroll records
- Whether the final pay date has been allocated to the correct tax year
- Whether leavers and starters have been processed correctly
- Whether your payroll software will apply the year-end indicator correctly
- Whether there are any unresolved corrections from earlier in the year
- Whether the payroll records you are retaining are organised and accessible
These checks are not a substitute for HMRC guidance, but they are often the difference between a clean year-end and a time-consuming one.
Common payroll year-end mistakes employers make
Forgetting the final submission marker
Submitting payroll data without marking it as the final submission for the year is a frequent problem. The payroll may look complete from your side, but HMRC may not treat it as closed for the year.
Using the wrong date logic
At payroll year-end, it is the payday that matters for reporting. Employers sometimes focus on when the work was done rather than the date employees are actually paid, which can create confusion around which tax year the payment belongs to.
Leaving P60s too late
The deadline is clear, but delays still happen. Often the cause is a late review of payroll figures or uncertainty over whether final year-end data has settled. Planning the P60 process immediately after final reporting helps avoid last-minute problems.
Assuming software means no checks are needed
Software is helpful, but it does not remove employer responsibility. A wrong setting, a missed final indicator or an incomplete employee record can still cause errors. Year-end should always include a human review.
Poor record retention
If records are incomplete, duplicated or difficult to find, dealing with later queries becomes harder than it needs to be. HMRC’s requirement to keep records is not just a formality. It supports the accuracy of your reporting.
How payroll year-end fits into wider business compliance
Payroll year-end is not only about filing obligations. It is also a useful point to check the quality of your payroll process more broadly. If year-end feels rushed every year, that can be a sign that payroll data is not being maintained consistently during the year.
For directors and business owners, payroll year-end is often the moment when wider admin issues surface, such as:
- Inconsistent employee data
- Unclear internal payroll responsibilities
- Late communication of pay changes
- Weak document storage procedures
- Overreliance on one person or one system without review
Addressing those issues now can reduce risk for the next tax year and make routine PAYE administration more efficient.
When to get help with payroll year-end
Some employers can handle year-end entirely in-house. Others are better served by getting support, especially if the payroll includes director payments, variable staff patterns, historic corrections or uncertainty over reporting treatment.
You may want professional help if:
- You are not sure whether your final FPS or EPS has been completed correctly
- You are closing a PAYE scheme and want the cessation details reported properly
- You have had payroll changes near the year-end date
- You are unsure whether your records would stand up to HMRC scrutiny
- You want confidence that the new tax year has been set up correctly from 6 April
The commercial value of support here is simple: payroll year-end mistakes often cost far more time to correct than they do to prevent.
FAQ: payroll year-end checklist for UK employers
When does the UK payroll tax year end?
HMRC says employers need to report on the previous tax year, which ends on 5 April and prepare for the new tax year starting on 6 April. Official guidance: https://www.gov.uk/payroll-annual-reporting.
When should the final payroll report be sent to HMRC?
HMRC says the final payroll report of the year should be sent on or before employees’ payday. Official guidance: https://www.gov.uk/payroll-annual-reporting.
How do I show HMRC that this is my last submission for the tax year?
HMRC says the final FPS or EPS for the tax year should be marked with Final submission for year = Yes. If the PAYE scheme is closing, HMRC says to use Ceased indicator = Yes instead and complete the cease date. Official guidance: https://www.gov.uk/guidance/what-payroll-information-to-report-to-hmrc.
When do employees need to receive their P60?
HMRC says employees must be given a P60 by 31 May. Official guidance: https://www.gov.uk/payroll-annual-reporting.
How long must payroll records be kept?
HMRC says payroll records must be kept for 3 years from the end of the tax year they relate to. Official guidance: https://www.gov.uk/paye-for-employers/keeping-records.
Final thoughts
A reliable payroll year end checklist is really about sequencing the right actions at the right time: identify the final payday in the tax year, send the final report on or before payday, mark the submission correctly, issue P60s by the HMRC deadline, update payroll records from 6 April and keep your records properly afterwards.
For smaller employers, that may be enough to stay in control. For growing businesses, payroll year-end is often the point where hidden weaknesses in systems or processes become visible. Either way, getting it right matters.
If you want practical help with payroll year-end, PAYE administration or a review of your payroll processes, Business Help Group UK can help you work through the steps clearly and efficiently. If you would like support tailored to your business, get in touch through Business Help Group UK.
