Payroll year end is just around the corner (5 April 2022), and we're here to help. Whether it's your first payroll year end or you're a seasoned professional, this article for QuickBooks Standard Payroll will cover everything you need so you can wrap up the tax year and prepare for the next.
If you use Advanced Payroll, click here.
Things to remember
For those eligible, remember to let HMRC know that you're claiming Employment Allowance in 2022/23. Find out if you qualify for EA here.
Year end key dates
- Tuesday 5 April, 2022 - End of tax year 2021/22
- Wednesday 6 April, 2022 - Start of new tax year 2022/23
- Tuesday 19 April, 2022 - Final submission deadline for FPS and EPS of tax year 2022/23
- Tuesday 31 May, 2022 - Deadline for all employees that are still employed at the end of the tax year to receive their P60 form
- Wednesday 6 July, 2022 - Deadline for submission of P11d forms to HMRC for tax year 2021/22
Key tax changes and new initiatives
Year end checklist
To make sure your year end goes smoothly, we've created this handy checklist:
1. Check if your payroll date ends on week 52 or week 53
If your employees are paid monthly you won't have a week 53, and you can process your payroll as normal. If the final pay date falls on 5 April then your payroll ends on week 53.
Learn more about week 53 for directors and how National Insurance is calculated.
2. Run and submit your final payroll
We'll notify you in QuickBooks that it's your final payroll of the tax year. If this is your first time, this article will show you how to create a pay run.
You can also register to watch a webinar where our experts answer common questions and share essential information about payroll year end.
3. Submit your final Full Payment Submission (FPS)
Every time you run payroll, you need to submit an FPS to HMRC to show all employee payments and deductions. HMRC uses the FPS to calculate how much PAYE and NIC liability is due from your business each tax month.
To make it easier (and skip a couple of steps every payday), turn on RTI reporting and QuickBooks will automatically submit an FPS to HMRC each time you run payroll.
Note: QuickBooks will automatically inform HMRC that this is your final payroll of the tax year.
4. Receive submission confirmation email
Once you have submitted your final FPS, you'll receive a confirmation email from HMRC to let you know that your submission has been accepted.
To see a complete breakdown of your submission to HMRC:
- Go to Taxes, and then Payroll Tax.
- Click the submission and select Review.
5. Give employee payslips
Next, download or email payslips to all your employees on or before their pay date. A payslip is generated for each employee every time you run payroll. This must show an employees' earnings before and after deductions, taxes and other contributions.
To save time on admin you can invite your employees to QuickBooks Workforce, a secure self-service portal where employees can view and download their payslip and P60 form themselves.
6. Print off P32 report
An Employer Payment Record (P32) report is a summary of the amounts you have paid to HMRC each tax month, and will help you determine if you need to submit an Employer Payment Summary (EPS). This report includes all PAYE, NI contributions and student loans deductions.
7. Give employees their P60 form
Finally, give your employees their P60 forms by Tuesday 31 May, 2022.
Note: A P60 form is only created for employees who are still in your employment at the end of the tax year.
To save time on admin you can invite your employees to QuickBooks Workforce, a secure self-service portal where employees can view and download their payslip and P60 form from anywhere at any time.
That's it! You've successfully completed your final payroll for this tax year.
More helpful links
Standard and Advanced Payroll product comparison
Check out this complete list of features for Standard and Advanced Payroll so you can choose which one is best for you and your business.
Standard Payroll hub
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