Critical Dates for Payroll Reporting

Key Payroll Reporting Deadlines

End of the Financial Year

One of the most important dates in payroll reporting is the end of the financial year, which falls on 5th April. Payroll professionals must complete several tasks to finalise payroll records for the year, including:

Final Full Payment Submission (FPS)

The Final FPS must be submitted on or before 5th April. This ensures all pay and tax details for the year are accurately reported to HMRC. Missing this deadline can result in late filing penalties starting at £100 per month, increasing based on company size. Employers should verify that all employee earnings, deductions, and tax codes are correct before submitting the FPS.

Employer Payment Summary (EPS)

Due by 19th April, the EPS is required if an employer needs to reclaim statutory payments (such as statutory maternity pay) or report any adjustments not included in the final FPS. Failing to submit the EPS on time can mean missing out on recoverable amounts for statutory payments, potentially affecting cash flow.

Issuing P60s

Employers must provide employees with their P60 by 31st May. This document summarises an employee’s total pay and tax deductions for the financial year. A P60 is necessary for employees to complete self-assessment tax returns and verify their tax records. Not providing P60s on time can result in penalties and employee disputes.

Benefits in Kind (BIK) and P11D Reporting

BIK Registration

Employers wishing to payroll benefits in real-time must register with HMRC by 5th April. If they fail to register, these benefits must be reported via P11D instead, which can increase the administrative burden.

P11D Submission

Due by 6th July, the P11D form reports benefits in kind provided to employees, such as company cars, health insurance, and loans. Late submissions can lead to penalties of £100 per month per 50 employees. Employers should ensure all benefits are correctly recorded to prevent errors and disputes.

Class 1A National Insurance (NI) Contribution

Payment for Class 1A NI on benefits must be made to HMRC by 19th July. Late payments may result in interest charges and penalties. Employers must calculate and report Class 1A NIC accurately to avoid compliance issues.
Other Important Payroll Reporting Deadlines

Monthly Payroll FPS

Employers must submit an FPS on or before each payday to ensure all payroll information is accurately reported in real-time. Missing this deadline can result in automatic penalties and potential HMRC investigations. Keeping payroll data updated and running regular audits can help prevent errors.

Quarterly or Monthly PAYE Payments

Most businesses must make PAYE and National Insurance payments by the 22nd of the month (if paying electronically) or the 19th (if paying by cheque). Late payments incur interest and possible surcharges. Employers should set up automated reminders to ensure timely payments.

Auto Enrolment Pension Contributions

Regular submissions must be made to pension providers to ensure employees’ contributions are correctly processed. Failure to comply can lead to fines from The Pensions Regulator. Employers should monitor contributions closely and communicate with pension providers to avoid errors.

How PayEscape Can Help with Payroll Reporting

As the new financial year approaches, payroll teams face increasing demands to ensure compliance while managing everyday payroll tasks. PayEscape simplifies the payroll process with cloud-based payroll, HR, and time and attendance solutions designed to enhance efficiency and accuracy.

Steps Taken by Payroll Professionals

Managing payroll for the new financial year involves:

1. Reviewing Employee Data: Ensuring tax codes, salaries, and benefits are up to date.
2. Completing End-of-Year Submissions: Filing FPS, EPS, and P11Ds correctly and on time.
3. Ensuring Compliance with New Legislation: Staying updated on tax thresholds, National Minimum Wage changes, and pension contribution requirements.
4. Generating Reports: Producing accurate payroll reports to track PAYE liabilities and employee costs.
5. Managing Payroll Adjustments: Processing overtime, bonuses, and deductions efficiently.