How do I run my Payroll Year End

If you have not already done so, install the Paydata update – go to Help > check for latest update and click next  if there is a higher available version, select next and do the update.

1. For each active payroll, complete your last payroll run as normal
2. If you have no EPS to submit, submit your FPS with ‘Final Submission for the Tax Year’ ticked.
3. If you have an EPS to complete, submit your FPS as normal, then submit your EPS with ‘Final Submission for the Tax Year’ ticked.  NB if you have more than one payroll with the same tax reference number, only tick on the final payroll after all other FPSs under that tax ref have been made.
4. Process the End of Tax Year – Maintenance > End of Tax Year

4a.  Produce P35 Continuation Sheets and P60s. Print Employees’ P60s and distribute them to your employees (unless emailing – see 4b.).  P35 documents may be printed for your own records. No submissions are sent to HMRC at this stage as they get the P14 and P35 information from the final FPS submission.

4b. Email P60s to Employees. Where employees are set to receive payslips by email this option can be used to email P60s in the same way.

4c. Reset Employee’s Records for the New Tax Year. This will create a copy business and clear the data from this business for the new tax year.

Repeat steps in 4/a/b/c for each active payroll.

5. Update the Tax and NI Tables - After all Year-Ends have been run and before the first Payroll Run of the New Year, update and check the Tax and NI tables as per the March 2025 Table Changes Notice 

 6. Individual Employee Tax Codes need to be updated –  If there is a block change for the new tax year, you can use the Maintenance > Automatic Update of Tax Codes (You will be notified prior to year end as to whether you need to use this) – you can also use this to automatically clear any Week1/Month1 markings.

You should then adjust any individual tax codes that you have been notified about by going to Home > Employee records > Payment

7. Claiming Employment Allowance – If you wish to claim in the 2025-26 year, you will need to submit an EPS for 6th April- 5th May with the claim option ticked. Do this step after 5th May after the end of the first pay month.  Fill in any statutory payments to notify and select Details Verfied.