This is stage two of four to complete your payroll year end. To view all four stages, visit the payroll year end 2026 hub.
The steps below take you through important steps to prepare for year end.
If you haven't updated your software yet, install the year end update, and ensure you're on v32.00.297 or above.
To check your version number:
If you need to update, you can find out how in our download and install the Sage 50 Payroll year end update article.
If you pay your employees monthly, you don't have a week 53.
Also, if you don't pay your employees on a Sunday, you won't have a week 53 this year.
For help with checking whether you have an extra pay period this year, visit our how to identify and process week 53 article.
There are several key tasks to process your final payroll and ensure all of your year end values are correct.
Process your final pay period and update records for all pay frequencies in the 2025/2026 tax year.
If any employees leave on 5 April 2026 or before and receive their final payment by 5 April, process them as leavers and produce their P45.
Submit the FPS as normal, on or before the date your employees receive their pay.
If applicable, submit your EPS for month 12. For example, you need to recover statutory parental payments from HMRC.
In the last pay run of the tax year, Sage 50 Payroll automatically calculates any pro rata basis directors' NI cumulatively.
This is due to HMRC requirements. You don't need to do anything differently when you process a director's last payment of the tax year.
To find out more, visit our understanding directors' NI at payroll year end article.
You've completed your final pay periods of the 2025/2026 tax year. You can now process your payroll year end.