Staying Compliant with HMRC for 2024/25

As we approach the end of another tax year, it’s time for UK employers and payroll teams to prepare for Payroll Year-End — an essential compliance milestone that ensures employee records are accurate and all required submissions to HMRC are complete.

With the right preparation, year-end can run smoothly. This guide will help you understand the process, key deadlines, and practical steps to take.

When is Payroll Year-End?

The UK tax year runs from 6 April to 5 April each year. The final payroll for the 2024/25 tax year must be processed on or before 5 April 2025. After that, several statutory tasks must be completed to close the old year and prepare for the new tax year.

More information: HMRC - Running payroll: End of year process.

Submitting Your Final FPS

Your Full Payment Submission (FPS) reports employee pay and deductions to HMRC. When sending your final FPS for 2024/25, you must mark it as the final submission of the tax year.

If you pay any employees after 5 April (for example, for late bonuses or corrections), these payments must be reported in the new tax year with a new FPS.

Sending an EPS (If Required)

An Employer Payment Summary (EPS) is needed if you are claiming reductions (such as the Employment Allowance) or reporting adjustments (such as CIS deductions). This should be submitted after your final FPS.

More guidance: HMRC - How to correct or void your FPS or EPS.

Issuing P60s to Employees

Each employee who is employed on 5 April 2025 must be provided with a P60. This document summarises their total pay, tax, and National Insurance (NI) contributions for the year.

You must issue P60s to employees no later than 31 May 2025.

See: HMRC - PAYE forms P45, P60, P11D.

Reporting Taxable Benefits (P11D)

If your company provides taxable benefits — for example, company cars, health insurance, or travel expenses — you’ll need to complete P11D forms. These must be submitted to HMRC and provided to employees by 6 July 2025.

In addition, Class 1A National Insurance on the value of benefits must be paid to HMRC by 22 July 2025 (if paying electronically).

More details: HMRC - PAYE: End of year expenses and benefits (P11D).

Payroll Year-End Checklist

To help ensure a smooth year-end process, use this simple checklist:

Reconcile your payroll records, including pay, tax, NI, student loan repayments, and pension contributions.

Submit your final FPS on or before 5 April.

Send your EPS (if required).

Provide P60s to employees by 31 May.

Submit any required P11Ds and pay Class 1A NIC by July deadlines.

Pay any outstanding liabilities to HMRC.

Archive payroll records for at least three years.

Preparing for the New Tax Year (2025/26)

Once year-end is complete, you’ll need to prepare your payroll for the new tax year, starting on 6 April 2025.

First, apply the new tax codes for employees, based on notices from HMRC. Update your payroll software with new rates and thresholds for tax, National Insurance, and student loan repayments.

You should also communicate any changes to employees — for example, updated pension contribution rates or changes to benefits.

See: HMRC - Start the new tax year.

Key Deadlines Summary

Here’s a quick reminder of the key payroll deadlines for the coming year-end:

Final FPS for 2024/25: on or before 5 April 2025

EPS (if required): after final payroll

P60s to employees: by 31 May 2025

P11Ds to HMRC and employees: by 6 July 2025

Payment of Class 1A NIC: by 22 July 2025 (if paying electronically)

Final Thoughts

Payroll Year-End is an important part of running your business and remaining compliant with HMRC. By staying organised, checking your records carefully, and following HMRC’s guidance, you can manage this process confidently.

Start preparations early, make use of your payroll software’s year-end tools, and don’t hesitate to seek professional advice if needed. Remember, HMRC also provides comprehensive online resources and a dedicated employer helpline for additional support.