Three tips for Payroll Year End (PYE) 2025

It is never too early to start preparing for Payroll Year End (PYE) 2025! After all, to ensure a smooth and compliant PYE with minimal stress, you need to stay on top of your processes.

That's why we're here to help!

In this blog, we'll share three valuable tips to help you ensure a smooth and successful Payroll Year End.

From navigating key dates to maintaining solid processes, we've got you covered.

1) Remember the key Payroll Year End 2025 dates

One of the main challenges associated with PYE is managing the various deadlines.

Here are the most important dates you need to remember.

Keep these dates close to hand so you don’t miss any major deadlines.

Add them to your calendar, scribble them down on some paper, make a note of them in your phone – whatever it takes, keep them front of mind.

• On or before your employees’ payday: send your final FPS payroll report of the year 
• From 6^th April: update employee payroll records 
• From 6^th April: ensure your payroll software is updated 
• By 31^st May: give your current employees a P60 
• By 6^th July: report employee expenses and benefits if they aren’t being processed through payroll 
• By 19^th July: pay Class 1A NIC on P11D benefits via post 
• By 22^nd July : pay Class 1A NIC on P11D benefits electronically 

More content: Preparing for Payroll Year End (PYE) 2025 - understanding the pitfalls

Read here

2) Cement your understanding of Payroll Year End factors

Make your life easier this Payroll Year End.

When preparing for PYE 2025, ensure you have a solid understanding of the following areas to help ensure smooth processes.

Staff details: are all your staff details correct and up-to-date in your payroll software? 

Pay details: have you submitted all the necessary details showing how you have reported all your staff’s pay correctly? 

The final pay run: process your last pay run that falls on or before 5^th April 2025 and check you are happy with your employees’ year-to-date figures. 

Process leavers: have you processed any leavers before your final submission, so this information is recorded in the correct tax year? 

Extra payroll week(s): if you run a weekly payroll (including fortnightly or four-weekly) then you may have to complete an extra pay run. 

Final submission: this allows HMRC to finalise the figures for this tax year, for each employee. If you didn’t pay anyone in the last period before 5^th April, then you will need to submit an employer payment summary (EPS). 

Process employee P60s: this is important as every employee is legally entitled to a P60 document. 

FREE GUIDE: The Payroll Year End (PYE) survival guide

Download here

3) Ensure you have good payroll data 

One of the best ways to ensure a smooth Payroll Year End is by having good data.

However, employee information regularly changes throughout the year, necessitating the need for you to actively manage data; it is vital information, such as newcomers, leavers, salary alterations or personal detail changes have been correctly captured. 

If your staff record keeping has been prioritised, your data should be in place. 

Regarding your employee data, if you're not sure where to start, ask yourself the following: 

• Do you have any former employees on record? 
• Have all deductions been processed? 
• Have all non-payroll benefits been included and calculated? 

Top tip: use this Payroll Year End as an opportunity to streamline data. If you're relying on outdated methods, such as spreadsheets, maintaining good, error-free data is incredibly tough. However, cloud payroll software, that is approved by HMRC, can handle all necessary calculations and keep precise records, helping ensure stress-free compliance. 

More content: How to eliminate payroll errors with HR integration

Read here

Make this upcoming PYE the best yet!

Hopefully, the above has offered some guidance, helping you tackle Payroll Year End 2025 with confidence.

If you need more support, IRIS can help.

We have a wide array of payroll solutions which can suit the needs of any business.

Whether you want software to manage payroll in-house or would prefer to outsource the responsibility, we have you covered.