In the UK, the tax year ends on 5th April. Following on from this, there are a number of forms and documents that must be completed.
The more straightforward paperwork that needs to be done at the end of the tax year includes ensuring you issue employees with their P60 form – which details National Insurance contributions, statutory pay, student loan repayments, gross earnings and tax paid on the previous year – by May 31st, and final P46 car return forms, which focus on employees with company cars. The deadline for electronic submission for this is April 5th, and by paper is May 3rd.
Other important deadlines you need to know include:
- Final FPS. A Full Payment Submission (FPS) needs to be submitted to HMRC every time you pay your employees. On it, you need to include employee details like gross pay, income tax and National Insurance contributions. The final deadline is the last payday of the 2021/22 tax year.
- Final EPS. An Employer Payment Summary (EPS) is used to record additional values that are not reported on an FPS. Recovery and compensation for statutory payments, apprenticeship levy and CIS deductions are some of the things you’ll need to include on an EPS. The deadline for this is April 19th.
- P11D and P11D(b). A P11D is a form submitted to HMRC that details taxable benefits you have provided to your employees in the tax year. A P11D(b) is a form submitted to the HMRC to confirm how much Class 1A NIC is due on the benefits provided. Both forms need to be submitted to HMRC by 6th July following the end of the tax year.
- Payment of Class 1A NICs. Class 1A NIC is an employer liability that arises from benefits provided to employees. This needs to be paid to the HMRC by 22nd July following the end of the tax year and should correspond to the figure provided on your P11D(b).
Reviewing processes
Around 40% of small business owners say bookkeeping and taxes are the worst part of owning a business, so it is really beneficial to review processes. By doing this, you can strengthen compliance, create efficiencies, improve employee engagement, increase accuracy and also reduce costs.
The end of another tax year presents an opportunity to review your payroll processes and consider whether different software could work better for you. Did you know it only takes minimal data to transfer to a new software? Some softwares can onboard you in April but still support you with year-end tasks, such as P11Ds, from the previous tax year.