In this section:
- PAYE end-of-year tasks at a glance
- Finalising form P11 at the end of the tax year
- File your Employer Annual Return online: P35 and P14s
- Avoiding and correcting errors in your Employer Annual Return
- Expenses and benefits at the end of the tax year
- Expenses and benefits at the end of the tax year
- PAYE dates to remember this month
- PAYE Online login page
Finalising form P11 at the end of the tax year
At the end of the tax year, and by no later than 19 May, you must complete and send HM Revenue & Customs (HMRC) your Employer Annual Return. This comprises one form P35 as well as a form P14 summary for each employee for whom you have had to keep a form P11 or equivalent payroll record (either electronic or paper) during the tax year.
In order to complete your Employer Annual Return you'll first need to finalise the figures on each employee's P11 or equivalent record.
This guidance looks at both electronic and paper methods for finalising these payroll records, and highlights the benefits of using software now that almost all employers are required to file their annual return online.
On this page:
- The benefits of using payroll software
- Finalising form P11 using commercial software or the P11 Calculator
- If you still complete form P11 on paper
- Help and advice
The benefits of using payroll software
If your business is still using paper PAYE forms, HMRC strongly recommends moving to payroll software. There are many commercial payroll software packages available, as well as HMRC’s free P11 Calculator on the Employer CD-ROM.
Payroll software will save you time and reduce the potential for error when finalising your end-of–year figures. As well as completing the calculations automatically for you, in most cases software will also allow you to file seamlessly online – a significant advantage now that almost all employers are required to file their Employer Annual Return online.
Read the section below to find out more and for links to further guidance.
Finalising form P11 using commercial software or the P11 Calculator
If you manage your payroll using commercial software or HMRC's free P11 Calculator on the Employer CD-ROM, these will automatically add up the end-of-year payroll figures you need for your Employer Annual Return, saving you time and reducing the likelihood of error.
Using software also simplifies the process of filing the annual return online, which almost all employers must now do:
- Most commercial software will seamlessly transfer the figures from your payroll records into your annual return and then allow you to file online automatically.
- The free P11 Calculator on the Employer CD-ROM will do the same provided you have nine or fewer employees at the end of the tax year.
You'll need to check the features of your payroll software to confirm that automatic online filing is available to you. Our related guidance on the P11 Calculator (link below) explains in more detail which employers can use it to file online.
Bear in mind that to file your Employer Annual Return online you first need to register for HMRC’s ‘PAYE Online for employers’ service. This is quick to do but you have to wait to receive an Activation Code (also known as Activation PIN) in the post before you can start filing online. This can take up to a week to arrive, so allow plenty of time to register before the annual return’s 19 May deadline.
Read about the different types of payroll software
Find out about using commercial software or HMRC’s P11 Calculator
How to register for PAYE Online for employers
Filing your Employer Annual Return online
Find out which employers are exempt from end-of-year online filing
If you still complete form P11 on paper
To finalise an employee’s paper form P11 at the end of the tax year, you need to complete the following tasks:
- add up National Insurance contributions (NICs) entries in columns 1a to 1f
- record the employee's Scheme Contracted-out Number - where relevant
- add up any statutory payments/student loan deductions in columns 1g-1k
- complete the 'Pay and Tax totals' boxes - columns 3 and 6 at the bottom of the P11
Adding up NICs - columns 1a - 1f
Add up the entries in each of columns 1a, 1b, 1c, 1d, 1e and 1f and enter the total for each column in the corresponding column of the End of Year Summary section below, ready for transfer on to the form P14.
If you used the exact percentage method to calculate NICs
It is important to remember to round down the annual total of the earnings recorded in columns 1b, 1c and 1d to the nearest whole pound.
If you've used more than one NIC category letter during this employment
When completing column 1e you'll need to follow the steps below for each separate table letter per employee used:
- add all amounts of NICs not marked 'R'
- add all amounts of NICs marked 'R'
- take away (2) from (1)
- enter the figure reached at (3) in column 1e of the End of Year Summary section - if this is a minus amount mark the entry as 'R'
Refer to the table at the foot of the form that allows for multiple entries where required.
Recording an employee's contracted-out pension scheme number
If your employee is a member of any of the following listed pension schemes you must ensure you have entered the scheme contracted-out number in the boxes just to the right of the End of Year Summary section. The pension schemes are as follows:
- Contracted-out Money Purchase (COMP) scheme
- COMP Stakeholder Pension (COMPSHP) scheme
- The COMP part of your Contracted-out Mixed Benefit (COMB) scheme
Adding up Statutory Payments and Student Loan Deductions - columns
1g to 1k
Add up each of the entries in columns 1g, 1h, 1i, 1j and 1k and enter
the totals for each in the corresponding box at the bottom of those
columns.
Completing the section 'Pay and tax totals' boxes at the bottom of
form P11
The boxes you will need to complete will depend on your employees' circumstances.
Employee worked for the whole tax year - 6 April to 5 April
Enter the final figures shown in columns 3 and 6 of the P11 at week
52 (or 53) or month 12 into the corresponding 'In this employment' and
'Total for year' boxes.
If a K code was used:
- to complete the 'Pay' boxes on the left, enter the final figure shown in column 3 at week 52 (or 53) or month 12 into the corresponding 'In this employment' and 'Total for year' boxes
- to complete the 'Tax deducted' boxes on the right - add up the entries in column 7 and enter the total into the corresponding 'In this employment' and the 'Total for year' boxes
Employee started work during the past tax year, still worked for you at 5 April and you know their previous pay and tax details
Complete the three boxes 'In previous employments', 'In this employment' and 'Total for year' as follows:
- first enter in the 'In previous employments' boxes the previous pay and tax figures shown on the form P11
- then complete the 'In this employment' boxes according to the basis on which PAYE has been operated - as described below
If PAYE was operated on a cumulative basis:
- enter the final figures shown in columns 3 and 6 of the P11 at week 52 (or 53) or month 12 into the corresponding 'Total for year' boxes
- subtract any 'In previous employment' figures from the 'Total for year' figures and put the result in the corresponding 'In this employment' boxes
If PAYE was operated on a week 1/month 1 basis:
- add up all the amounts in columns 2 and 7 of the P11 for this employment and enter the totals in the corresponding 'In this employment' 'Pay' and 'Tax deducted' boxes
- add together the 'In previous employment' and 'In this employment' for each column and put the result in the 'Total for year' boxes
If a K code was operated on a cumulative basis:
- to complete the 'Pay' boxes on the right enter the final figure shown in column 3 of the P11 at week 52 (or 53) or month 12 into the 'Total for year' box
- subtract any 'In previous employment' figures from the 'Total for year' figures and enter the result in the 'In this employment' box
- to complete the 'Tax deducted' boxes on the right add up the column 7 entries for tax you have deducted and enter this figure in the 'In this employment' box
- add tax deducted in the 'In previous employment' box to the tax you have deducted 'In this employment' figure and put the total in the 'Total for year' box
If a K code was used on a week 1/month 1 basis:
- add up all the amounts in columns 2 and 7 of the P11 for this employment and enter the totals in the 'In this employment' 'Pay' and 'Tax deducted' boxes
- add together the 'In previous employment' and 'In this employment' figures for each column and put the result in the 'Total for year' boxes
If the employee started work for you during the tax year and you don't know their previous pay and tax details
Complete the 'In this employment' boxes only as follows:
- if PAYE was operated on cumulative basis enter the final figures shown in columns 3 and 6 of the P11 at week 52 (or 53) or month 12 into the corresponding 'In this employment' boxes
- if PAYE was operated on a week 1/month 1 basis add up all the amounts in columns 2 and 7 of the P11 and enter the totals in the corresponding 'In this employment' boxes
If you operated a K code:
- to complete the 'In this employment' 'Pay' box follow the relevant cumulative or week 1/month 1 guidance as described in the previous two bullets above
- to complete the 'In this employment' 'Tax deducted' box add up the entries in column 7
View a sample completed form P11
Next steps once your form P11 is finalised
Once you have completed your P11 form, you are ready to complete your Employer Annual Return (form P35 and forms P14).
Please note that starting with the 2009-10 return, due by 19 May 2010, almost all employers are required to file their Employer Annual Return online rather than using paper forms. This applies even if you’ve been using paper P11s during the year.
In order to file online you’ll first need to register for the ‘PAYE Online for employers’ service on the HMRC website. This is quick to do but you have to wait to receive an Activation Code (also known as Activation PIN) in the post before you can start filing online. This can take up to a week to arrive, so allow plenty of time to register before the annual return’s 19 May deadline.
Follow the links below to find out more.
How to register for PAYE Online for employers
Filing your Employer Annual Return online
Find out which employers are exempt from end-of-year online filing
Top
Help and advice
You can find quick answers to the most commonly asked questions about finishing the tax year by following the link below.
Finishing the tax year – frequently asked questions
If you still can't find the information you need, you can ask a question through our email query service.
