Extra pay runs happen because a year doesn’t split exactly into 7-day weeks.

Weekly payrolls often referred to this as week 53. For a 2-weekly payroll this is 2-week 27, and in 4 weekly payroll it is 4-week 14.

For example:

If you divide the 365 days in a year by 7 days in a week, you get 52 weeks plus some extra days.

These extra days add up to make an extra week.

In the 2023/2024 tax year, Week 53 includes Thursday 4th April, and Friday 5th April.

Read the HMRC Article Payroll: annual reporting and tasks (opens in new tab).

Check if you have an extra pay run at year end

You have an extra pay run if your normal pay day is Thursday or Friday and:

• You last processed your weekly payroll on the 28th or 29th March 2024
• You last processed your 2 weekly payroll on the 21st or 22nd March 2024
• You last processed your 4 weekly payroll on the 7th or 8th March 2024

You don't have an extra pay period if you pay your employees monthly.

 NOTE: Week 53 is based on your payroll processing date. It doesn't matter if you pay in arrears. HMRC is only concerned about the period the employees receive their money. They are not concerned about when the work was carried out.

 CAUTION: Under no circumstances change your process date to get an extra pay period, or to avoid one. This goes against HMRC legislation and will have consequences.

Check within payroll

Select the Pay Runs tab.

2 weekly payroll will state 2-week 27.

If you don't see any of these dates, you don't have an extra pay run, and shouldn't process one.

If you feel this is incorrect contact HMRC.

 CAUTION: Under no circumstances change your process date to get an extra pay period, or to avoid one. This goes against HMRC legislation and will have consequences.

Process your extra pay run

Run your extra pay run like you do any other payroll.

In line with HMRC requirements, the extra period uses week 1 / month 1 free pay allowance. This ignores previous pay and tax and calculates on a non-cumulative basis.

The tax calculation doesn't include the employee year-to-date figures.

Payroll does everything for you. You need not make any changes to the program.

If you need help processing your extra pay run, read our article Process a pay run.

Extra pay run Tax and P800 Forms

It’s normal for employees paid in an extra pay run to have underpaid tax. This is because, for each tax code, there is a set amount of free pay per year.

The free pay is based on a 52-week tax year.

If it is the case an employee has underpaid tax, HMRC will send them a P800 form later in the new tax year.

Read our article Employees receiving a P800.

Also read the HMRC article Payroll: annual reporting and tasks (opens in new tab).

Pensions and your year end

If you have a pension scheme set up in payroll, you need to complete some steps for your Pension Provider.

 NOTE: This is important. It applies whether you have an extra pay run (week 53) or not. 

For further information please read the relevant article:

• Nest pension contributions and payroll year end
• Smart pension contributions and payroll year end
• The People's Pension contributions and payroll year end
• NOW Pension contributions and payroll year end

If your pension provider is not listed, please contact your pension provider and ask about their week 53 requirements.

• Payroll year end 2023/2024