To make sure you're ready to process in the new tax year, complete the following tasks.

1. Check your version:

You must use v32 of Sage 50 Payroll to process payments in the 2026/2027 tax year.

Before you start processing in the new tax year, check you're using the latest software update:

1. Log in to Sage 50 Payroll as normal.
2. Go to Help then About.
3. Under Program Details, check the Version Number.

The latest version is v32.00.300. For help with checking your version and updating your software, follow the download and install the Sage 50 Payroll year end update article.

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2. Apply for the employment allowance:

You need to apply to claim the employment allowance at the start of each tax year.

1. Go to Payroll, then Change Process Date.
2. Ensure your process date is within the 2026/2027 tax year, then select OK.
3. Go to Company, then Settings.
4. Beside the Eligible for Employment Allowance checkbox, select the Submit button.
   • If this button is missing, you've already applied. If you need to submit another application, select Settings, then continue to Step 5
5. Select Continue then Submit.
6. Select Submit again, then allow the submission to complete.
7. Print the submission log if required, then select Close.

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3. Update the tax codes and clear the week 1 / month 1 flags:

For the 2026/2027 tax year, the personal allowance and emergency tax code remain the same at £12,570 and 1257L.

Remove any week 1/ month 1 flags before you process in the new tax year. 

Then, if HMRC send you any new tax codes for specific employees, update these before you continue.

Find out how to do this in our update your employees' tax codes article.

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4. Claim small employers' relief (SER):

Your company normally qualifies for SER if your liability for national insurance (NI) contributions was:

• £45,000 or less in the last complete tax year before the relevant employee’s:
  • qualifying week, or in the case of adoption, the matching week

You can learn more about SER in our what is SER article.

1. Click Company then click Settings.
2. Select the Eligible for Small Employers' Relief checkbox.
3. Click OK.

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5. Pensions module

If you use the pensions module, check it's ready for the new tax year.

Automatic enrolment phasing

When you process the first period of the new tax year, you're prompted to check your pension contribution rates are correct.

Find out how in our Automatic enrolment phasing - update the percentages using the Pensions Module article.

Pensions Data Exchange

If you use Pensions Data Exchange (PDX) to send pension data to your provider, follow the prepare PDX for the new tax year article.

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