Year-end guide for QuickBooks Online Core Payroll

• If you pay employees monthly, you don’t need to check this.
• If your last pay date falls on 5 April 2025, your payroll will end on week 53 instead of week 52.

QuickBooks will notify you when it’s time to run your last payroll for the tax year. Before you do this, check that all payroll details are correct.

If you need to edit or delete a pay run:

1. Click the ⚙️gear icon and go to Account and Settings.
2. Select Payroll Settings > UK Tax.
3. Adjust your Employment Allowance if needed.

Your Full Payment Summary (FPS) tells HMRC how much tax and National Insurance has been paid. After submitting:

• Wait for confirmation from HMRC.
• Check your submission in QuickBooks:
  1. Go to Taxes > Payroll Tax.
  2. Find your FPS submission and select Review.

Learn more about how to submit an FPS to HMRC in Core Payroll.

Employers must give employees payslips on or before their pay date. Payslips show earnings, tax deductions, and other contributions.

Make sure you're on top of your Employer Payment Record (P32) report. This report is a summary of the payments made HMRC each tax month, helping you assess whether you need to submit an EPS. It also includes details of PAYE, NI contributions and student loans deductions.

1. Go to Reports.
2. Search for P32 report.

To start payroll for the 2025/26 tax year:

1. Go to Payroll.
2. Click Payroll Settings from your To Do List or Settings.
3. Choose Active Tax Year > 2025/26.
4. Click Save.

Changes that can only be made at the start of a new tax year:

1. Change how company directors’ National Insurance (NI) is calculated.
2. Update an employee’s pay schedule.
3. Change an enrolled employee’s pension scheme.

Once updated:

• P60 forms can be generated.
• Employment Allowance is reset.
• Make sure all employee details are correct before running payroll.

If you haven't run payroll for the 24/25 tax year, you can still transition into the 25/26 tax year. Just make sure that employee setup is complete before running payroll.

Note: If an employee's setup isn't complete, you'll need to manually set them on the 'Cumulative' method for the start of the 25/26 tax year.

A P60 summarises an employee’s pay and deductions for the tax year. You must give these to employees by 31 May 2025.

And that's it! You've successfully completed your final payroll for this tax year.

If you need to return to 2024/25, but can’t:

1. Check for payroll payments in 2025/26:
   • Go to Employees > Payroll Payment List.
   • Delete any payments made on or after 6 April 2025.
   • If a terminated employee’s payslip needs to be deleted, reactivate them first.
2. Check pay schedules and pension schemes:
   • If changed in 2025/26, revert them to 2024/25 settings.
3. Manually undo any employee changes made in 2025/26 before moving back to 2024/25.
4. Core Payroll will remove pending pension enrolment profiles in the new tax year, so review pension settings before moving forward again.

Why can’t I run payroll?

• Check that your active tax year is set to 2025/26.
• If you moved back to 2024/25, check that all employees have valid NI letters (N, E, K, D) or tax codes (SD3).

Why is my employee’s NI number missing?

• Ensure the correct tax year is selected. NI letters (N, E, K, D) are valid only for 2024/25.

Why is my employee’s tax code being rejected?

• Check that your active tax year is correct. Tax code SD3 is only valid in 2024/25.

Why can’t I update a director’s NI details?

• Changes to a director’s NI settings must be made at the start of the tax year, before they are paid.

Why can’t I change an employee’s pay schedule or pension plan?

• You must be in the 2025/26 tax year before making these changes.

Why can’t I enter P45 details?

• Make sure the employee’s hire date is in the correct tax year.

Why isn’t my employee’s P45 information appearing on HMRC submissions?

• If their hire date was changed, re-enter the P45 details:
  1. Uncheck the P45 information.
  2. Click Save.
  3. Refresh the page and re-enter details.
  4. Click Save again.