PAYE end-of-year tasks at a glance

If you operate PAYE (Pay As You Earn) there are a number of key tasks you must complete in the period around the end of the tax year on 5 April.

This guide acts as a checklist - providing an overview of the actions you must take and the deadlines you'll have to meet.

The key end-of-year requirement for most employers is to file your Employer Annual Return (form P35 and forms P14).

Please note that almost all employers are required to file their annual return online.

In order to file online you first need to register for the PAYE online service from HM Revenue & Customs (HMRC). Completing the registration process can take up to seven days, and there are penalties if you file your annual return late - so don't leave registering until the last minute.

On this page:

Deadlines at a glance

Deadline Task

19 April

Outstanding PAYE tax and Class 1 NICs - postal payments must reach your HMRC Accounts Office

22 April

Outstanding PAYE tax and Class 1 NIC - cleared electronic payments reach HMRC bank account.

As 22 April 2011 falls on a bank holiday, your cleared payment must reach our bank account no later than the last bank working day before that date.

19 May

File your Employer Annual Return (P35 and P14s)

If you are exempt from the requirement to file your Employer Annual return online your paper return must reach your HMRC office by 19 May.

31 May

Give each relevant employee a form P60

6 July

File expenses and benefits annual return (forms P11D, P9D and P11D(b)) if applicable - give a copy to your employees

This is the last date for your form P9D and forms P11D, or substitutes. P11D(b) to reach your HMRC office.

19 July

Class 1A NICs - postal payments must reach your HMRC Accounts Office

22 July

Class 1A NICs - cleared electronic payments must reach HMRC bank account

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Register for PAYE Online - if you've not yet done so

If you are required to maintain a P11 Deductions Working Sheet or equivalent record for at least one of your employees, you'll need to file an Employer Annual Return each year. See the later section on this for the detail. However bear in mind that almost all employers must file their return online - and in order to do so you must first register as a user of the PAYE online service.

What to do

If you're not already registered for PAYE Online, follow the links below to find out more and register. Note that if an agent files part of your return and you file the other part, then you still need to register.

When to do it

HMRC recommends that you register as soon as possible.

The deadline for filing your Employer Annual Return is 19 May, so the very latest that you should register is a week before this. Registering on the HMRC website only takes a matter of minutes, but you'll need to wait to receive an Activation Code in the post before you can start to file online. This will take up to a week to arrive.

Registering for PAYE Online - further guidance

Online filing - an overview

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Set up payroll records for the new tax year

The key task when preparing for the new tax year, which begins on 6 April, is to set up new payroll records for your employees.

In most cases, this will be a form P11 or equivalent record (whether paper or electronic), but simpler records are permitted for some employees - follow the first link below for details.

HMRC strongly recommends that you use electronic methods to keep your payroll records - either commercial payroll software or the downloadable P11 Calculator which is part of HMRC's Basic PAYE Tools package.

Having your payroll records in an electronic format not only means that calculations are done for you automatically, it also makes completing your Employer Annual Return (P35 and P14s) much simpler now that online filing is a requirement for almost all employers.

Where to get HMRC's free P11 Calculator

A set of Basic PAYE Tools are now available to download straight to your computer. In addition to the P11 Calculator, the tools include:

  • an employer database on which you can record your employees' details
  • a range of other calculators that work out, for example, statutory payments
  • interactive forms such as P11D working sheets
  • a Learning Zone - including interactive learning material on how to use the Basic PAYE Tools

Download Basic PAYE Tools from the Business Link website (Opens new window)

Setting up payroll records - further guidance

More about choosing a payroll system

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Finalise your payroll records for the past tax year

What to do

You must finalise the figures on each employee's payroll record.

If you've had to maintain a form P11 or equivalent record for an employee, then you'll need the figures it contains in order to complete and file your Employer Annual Return (P35 and P14s).

If you use payroll software or HMRC's downloadable P11 Calculator, the calculations will be done automatically for you. If you still use paper records, you'll have to add up each employee's total earnings, tax, NICs, Statutory Payments etc, for the tax year.

When to do it

You can start to finalise your payroll records after your last payday before the tax year ends on 5 April. Your completed Employer Annual Return must reach HMRC by 19 May.

Finalising your payroll records - further guidance

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Complete and file your Employer Annual Return

What to do

You must complete and file an Employer Annual Return if you were required to maintain a form P11 or equivalent payroll record for at least one employee during the tax year - whether or not you had to make any deductions of PAYE or NICs from them. If this doesn't apply to you, see the next section 'Notify HMRC if you're not required to complete an Employer Annual Return'.

The Employer Annual Return comprises of:

  • a form P14 for each employee for whom you were required to maintain a form P11 or equivalent
  • one form P35 to summarise the end-of-year payroll totals for all of your employees combined

Depending on your circumstances you may also need to complete and file an Employer Supplementary Return (P38A). This is required if both of the following apply:

  • you're required to submit an Employer Annual Return
  • during the tax year you had employees for whom you didn't have to complete either a form P11 (or equivalent record) or a form P38(S) (which is used when you take on some student employees)

When to do it

Your Employer Annual Return (P35 and P14s) must reach HMRC by 19 May. You may be charged a penalty if your return is received later than this.

The requirement to file online

Almost all employers are required to file their Employer Annual Return online. You may be charged a penalty if you file on paper when required to file online.

Employers who can file on paper

The only employers who can file on paper are:

  • Employers entitled to operate PAYE using the Simplified Deductions Scheme for personal and domestic employees (using forms P12 and P37) - provided they haven't previously received a tax-free payment for online filing.
  • Practicing members of religious societies or orders whose beliefs are incompatible with the use of electronic methods of communication.
  • Employers who employ someone to provide domestic or personal care or support services at or from the employer's home subject to a number of conditions - follow the link below for further information.
  • Limited companies filing a return solely to submit an entry to report 'CIS deductions suffered' - since April 2011 these returns can be filed online. They should be submitted as a complete return with no P14s.

Filing your Employer Annual Return online - further guidance

Guidance for exempt employers - filing your annual return on paper

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Notify HMRC if you're not completing an Employer Annual Return

What to do

If you're not required to complete an Employer Annual Return because you are not required to maintain a P11 Deductions Working Sheet or equivalent record, you must notify HMRC. Otherwise you may receive reminders or even a penalty. To find out what information you'll need to provide and how to contact HMRC, follow the link at the end of this section.

When to do it

You should let HMRC know as soon as you know you do not have to maintain any P11s (or equivalent records).

Notifying HMRC if you have no Employer Annual Return to make

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Check whether a balancing payment or refund is required

What to do

Your completed Employer Annual Return shows you the total amount of PAYE tax and Class 1 NICs you should have paid to HMRC for the tax year. Compare this figure against the amount you actually paid to HMRC with your 12 monthly/four quarterly tax/NICs payments:

  • If the amount you've paid is higher than it should have been, HMRC will automatically reallocate any balance under £500 to your current year payments and notify you of the reallocation. If the amount of the apparent overpayment is over £500 and you wish to claim a repayment write to your HMRC office. Repayments can only be made after all the expected returns have been received and checked.
  • If the amount you've paid is lower than it should have been, you must make a balancing payment (also referred to as a month 13 payment) to HMRC.

When to do it

If you need to make a balancing payment it must reach HMRC by:

  • 19 April 2011 for postal payments
  • 22 April 2011 for payment by electronic methods - as 22 April 2011 falls on a bank holiday, your cleared payment must reach HMRC's bank account no later than the last bank working day before 22 April 2011

Interest will be charged on any amounts that HMRC doesn't receive by these dates.

Making PAYE payments to HMRC - further guidance

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Give a form P60 to each relevant employee

What to do

You must provide a form P60, which can be either paper or electronic to each employee who was working for you on the last day of the tax year (5 April) and for whom you were required to maintain a form P11 or equivalent payroll record. The P60 summarises the employee's total pay and deductions for the year.

When deciding whether to provide forms P60 electronically you may need to agree with the employee that they want to receive their P60s electronically. You will need to:

  • take into account the employees ability to easily access that information
  • provide secure facilities to view and print their P60 - if this is not possible the P60 can be issued to an email address that has been agreed with that employee

Preparing forms P60s

If you have used third party payroll software, it will usually automatically prepare the P60s for you in either an electronic or printed format.

Any printed version of an electronically provided P60 must clearly state 'This is a printed copy of an eP60'.

If you have used HMRC's P11 Calculator or HMRC's online filing service, they will automatically prepare the P60s for you. You can either print copies of the P60s or you can complete paper versions of the forms.

If you are unable to produce either electronic or printed forms P60 you will need to complete paper versions of the form.

If you would like to use your own design P60s in either electronic or printed format, you must follow the HMRC guidelines provided in the RD1 booklet 'Specification for employer substitute forms P60'.

Download booklet 'Specification for employer substitute forms P60' (PDF 661K)

If an employee has had more than one period of employment with you during the tax year, only provide the employee with one P60 - the P60 should only be for the period of employment up to and including 5 April.

If an employee asks for another copy, you may issue a duplicate. Duplicate P60s for the tax year 2010-11 onwards, irrespective of whether they are provided on paper or electronically, will no longer need to carry a 'duplicate' annotation.

If you need to make an amendment to the details shown on the original P60, you must give your employee details of the amendment. You can give them a letter showing the amendment or a new P60 marked 'REPLACEMENT'. This replacement P60 can be provided either on paper or electronically.

When to do it

You must give your employees their P60s by 31 May.

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Complete and file expenses and benefits forms

What to do

You must complete and file either a form P9D or P11D for any employees to whom you've provided expenses and benefits during the tax year.

You must also file a form P11D(b) to declare the overall amount of Class 1A NICs due on any of the expenses and benefits you've provided.

When to do it

All of these forms must reach HMRC by 6 July.

Expenses and benefits at the end of the year - further guidance

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Pay any Class 1A NICs due on expenses and benefits

What to do

You must send HMRC any Class 1A NICs that are due on the taxable expenses and benefits you've paid or provided.

When to do it

If you're sending payment by post, it must reach your HMRC Accounts Office by 19 July.

If you're sending payment by an approved electronic method, your payment must be cleared in HMRC's bank account by 22 July.

Interest will be charged on amounts not paid by these dates.

Paying Class 1A NICs - further guidance

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More useful links

Free HMRC workshop - helps you file online and more - book a place

Details of PAYE penalties

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