FreeAgent: 3 tips for a stress-free payroll year end

With the tax year end just around the corner on Friday 5th April, you'll have to complete your payroll reporting for the year. If you work through our three-step checklist, you can hit your deadlines and meet your responsibilities as an employer - but keep it stress-free.

1. Complete your 2023/24 tax year payroll reporting

If you use HMRC-recognised accounting software like FreeAgent to run your payroll, then reporting for the current tax year should be a breeze. FreeAgent sends your PAYE information directly to HMRC through a Full Payment Submission (FPS) every month, either on or before the day your employees are paid.

When you file your final month’s payroll (month 12), FreeAgent will send your FPS to HMRC as usual, along with a notification that this is the final month of your business’s payroll for the current tax year.

Before you make your month 12 payroll submission you should check that:

• the details of all your employees are included in your payroll

• the correct payment date (i.e. the day on or before the day you pay your employees) is displayed on all the month 12 payslips

• all payment amounts are correct, including any additional payments, pension contributions and student loan deductions

• all tax and National Insurance deductions are correct

• the leaving date of any employee you’re paying for the final time in this submission has been recorded in their payroll profile

2. Prepare P60s for all of your employees

Once you’ve made the final submission of your 2023/24 payroll report, you’ll need to provide all of your current employees with a P60 form. The deadline for issuing P60s is 31st May 2024. If you run payroll through FreeAgent, the software will automatically produce P60s for all your employees at the end of the tax year. Find out how to access your employees’ P60s in FreeAgent.

If you’re the director of a limited company with a salary, you will need your own P60. If you run payroll through FreeAgent, the software will automatically fill in your P60 information on the ‘Employment’ page of your Self Assessment tax return.

If you’re a sole trader or a partner in a partnership, neither you nor your partners are employees of the business. This means that you shouldn’t be included in payroll and won’t require a P60.

3. Get ready for the 2024/25 tax year

Once you’ve filed month 12 payroll for the current tax year, you’ll need to start a new payroll tax year, beginning on 6th April, in your accounting software. In FreeAgent, it’s straightforward to transfer employee profiles to a new payroll year. Remember to check you have the correct tax code for the new payroll tax year and that all of your employees’ payroll details are up to date before you begin.

If you’d like one handy place to run your payroll and manage your business admin, why not try a 30-day free trial of FreeAgent?

Originally published 16 March 2021
Last updated 13 March 2024

Disclaimer: The content included in this blog post is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this blog post. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.