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 to prepare so you can wrap up the tax year without breaking a sweat.
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 2021/22. Find out if you qualify for EA here.
Year end key dates
- Monday 5 April, 2021 - End of tax year 2020/2021
- Tuesday 6 April, 2021 - Start of new tax year 2021/2022
- Monday 19 April, 2021 - Deadline for final FPS and EPS submissions of 2020/21 tax year
- Monday 31 May, 2021 - Deadline for all employees to receive their P60 form
Year end checklist
To help you get started and mark 'make year-end checklist' off your to do list, we've gone ahead and made one for you:
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. Watch this video close off tax year with ease:
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 by Wednesday 31 May, 2021. 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 Wednesday 31 May, 2021.
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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