The year end process consits of three easy steps. This article will take you through everything you need to complete these.
Cause
Resolution
If you prefer to watch a video of the steps, select play below:
1. Review your employees’ pay values
Before you submit your return to HMRC, you must make sure your employees’ taxable pay is correct. You can do this by using the P11 reports. For an overview on how to generate this, use the dropdown below, or for more detailed steps, read Review your employees' P11 values.
From the Year End tab, in the Tax year to report ondrop-down, select the relevant tax year.
Select Review Employee Pay (P11), then View P11 for all employees.
Check that the information is correct, and that there are no missing periods that are unaccounted for. If you find mistakes, correct them before you continue. For more information, read Correct a completed pay run.
Once you’re happy that the P11s are correct, proceed to the next step.
Select Return to Year End. Select the Employee Pay reviewed check box.
2. Submit the final EPS
At the end of the tax year, you must submit a final employer payment summary (EPS) to HMRC. This final submission is different from the usual EPS you send throughout the year.
It includes your end of year declarations and If applicable, you can also send the date your business ceased trading.
In the Tax year to report on drop-down, select the relevant tax year.
Against step 2, select Submit EPS.
Select Next if your not closing down the business and PAYE scheme. If you are closing the PAYE scheme down, read Closing a business.
This screen automatically populates any related figures. Check they’re correct.
Amount of CIS Deductions suffered
If you have a limited company and you've recorded CIS deductions on your EPS, the total is here.
The value reduces your tax liability.
Total Recovery & Compensation for Statutory Payments
If you paid statutory payments to your employees, this is the amount you claimed. It also shows any compensation.
This includes:
Statutory Maternity Pay
Statutory Adoption Pay
Ordinary Statutory Paternity Pay
Additional Statutory Paternity Pay
Select Next.
Select Submit, or if you want to check your Government Gateway credentials are correct, select Change.
The Year End tab shows if the final EPS submission is successful or not. If it fails, you must correct the error and follow these steps again. For more information, read RTI Submission errors.
3. Produce your employees’ P60s
You must produce a P60 for every employee who is still working for you on 5 April 2025. If they leave before this date, you must generate a P45 instead.
You must then give your employees their P60s by 31 May 2025.
The P60 shows your employee’s total pay and deductions, including:
Their final tax code for the tax year
Their total pension income for the year, if applicable
The total amount of tax they paid during the year
Their total national insurance contributions for the year
There are three ways to create the P60's
Publish to HR Essentials.
Export and email.
Print.
NOTE:Check your business address is up to date to make sure the information on the P60 is correct. To change your business address, go to Manage Business Account, then Business Details.
If you use Sage HR Essentials, you can publish P60s online. This means there's no need to print and distribute them as the customer logs in to view them. For more information, read Publish P60s to Sage HR Essentials.
You need to generate the P60 first and them export them as a .PDF file. You then need to attach the document to an email and email to individual employees.
With Sage Payroll, you don’t need any stationery to print P60s. The pdf document shows the template so you can print directly onto plain paper. For more information, read Print Employee P60's.
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