As the 2025/26 tax year comes to an end, employers should ensure that all payroll year-end processes are completed accurately and on time.
This checklist highlights the key payroll deadlines, reporting requirements and new-year tasks to help employers stay compliant with HMRC obligations.
2025/26 Payroll Year-End Checklist
Finalise Your Last Payroll Run
Before 5 April 2026, make sure:
- All employee payments, deductions and statutory payments are processed correctly
- Leavers and starters have been updated
- Employee benefits and expenses are reviewed
- Payroll reports are reconciled against your accounting records
Submit Final FPS
Deadline: On or before the final payday of the tax year
Submit your final Full Payment Submission (FPS) to HMRC and ensure it is marked as the “final submission for the year”.
If you operate multiple payroll frequencies, such as weekly and monthly payrolls, the final indicator should only be selected on the last FPS submitted for the tax year.
Submit EPS (if required)
Deadline: 19 May 2026
Submit an Employer Payment Summary (EPS) if you need to:
- Claim statutory payment recoveries
- Claim Employment Allowance
- Report Apprenticeship Levy liabilities
- Correct a missed final submission indicator
- Confirm that no payments were made in the final tax period
Key Payroll Year-End Deadlines
| Task | Deadline |
| Final FPS submission | On or before payday |
| Final EPS submission (if required) | 19 May 2026 |
| Issue P60s to employees | 31 May 2026 |
| Submit P11D forms | 6 July 2026 |
| Pay Class 1A National Insurance (electronic payment) | 22 July 2026 |
Employee Documents
Issue P60s
You must provide P60s to all employees who are employed on 5 April 2026.
P60s summarise an employee’s total pay and deductions for the tax year and must be issued no later than 31 May 2026.
Employees who left before 5 April 2026 should already have received a P45 instead.
Submit P11Ds and Pay Class 1A NIC
Taxable benefits and expenses must be reported to HMRC using P11D forms by 6 July 2026.
Any Class 1A National Insurance due on benefits and expenses must be paid by 22 July 2026 if paying electronically.
2026/27 New Tax Year Checklist
Update Payroll Software
Before processing the first payroll of the new tax year, ensure your payroll software has been updated to the 2026/27 version.
You should:
- Install payroll software updates
- Verify new tax tables and National Insurance thresholds
- Check statutory payment rates have been updated
- Confirm pension thresholds and contribution settings are correct
- Run a test payroll where appropriate
Reset Payroll for the New Tax Year
Complete all year-end closing procedures within your payroll software before processing the first payroll of 2026/27.
This may include:
- Closing the 2025/26 tax year
- Rolling forward employee records
- Archiving year-end reports
- Resetting student loan and statutory payment balances where applicable
Review Employee Tax Codes
Employers should ensure all employees are on the correct tax code for 2026/27.
Checks should include:
- Applying any HMRC-issued tax code notices (P9 notifications)
- Updating employees currently on W1 or M1 codes where appropriate
- Reviewing emergency tax codes
- Confirming employee starter declarations are accurate
Check Employment Allowance Eligibility
Eligible employers can continue to claim Employment Allowance through payroll during the 2026/27 tax year.
Employment Allowance reduces eligible employers’ Class 1 National Insurance liability.
You may qualify if:
- You are a business or charity paying employer Class 1 National Insurance contributions
- Your business is not carrying out more than 50% of its work in the public sector (unless you are a charity)
- You are not the sole employee paid above the secondary threshold who is also a director
Employment Allowance is claimed through an EPS submission.
Review Apprenticeship Levy Obligations
Employers with an annual pay bill exceeding £3 million are required to pay the Apprenticeship Levy.
The levy is charged at 0.5% of the annual pay bill and reported through the EPS process.
Need Support?
If you need any support with payroll year end or preparing for the new tax year, please get in touch with the Menzies payroll team.
Our payroll specialists can help ensure your payroll processes remain accurate, compliant and efficient throughout the year.
Contact Our Experts
