Final Payment Submissions to HMRC

D55F3A85-4C8C-4000-8482-9D1DEE8C5C44It’s time to prepare for making your last Full Payment Submission or Employer Payment Summary of the year

From HMRC
Your last Full Payment Submission (FPS) or Employer Payment Summary (EPS) of the year (up to and including 5 April 2022) needs to include an indicator that you are making the final submission. This tells us you have sent us everything you expected to send and we can finalise our records for you and your employees.

Some commercial payroll software will not let you put the indicator on an FPS. If that’s the case, send your last FPS and then send an EPS with the indicator ticked. You can also send an EPS with the indicator ticked if you forgot to put the indicator on your last FPS submission for the tax year.

You also need to prepare to give your employees a P60 if they are in your employment on 5 April 2022. You have got until 31 May 2022 to do this.

If you are not going to pay anyone again this tax year, remember to send an EPS with the indicator ticked to show you did not pay anyone in the final pay period and it is the final submission. You have until 19 April 2022 to do this, but you will get a message from the Generic Notification Service if you file it after 11 April 2022.

Student and postgraduate loans: updated thresholds and rates from 6 April 2022

The student and postgraduate loans thresholds and rates are as follows:

Plan 1 ― £20,195

Plan 2 ― £27,295

Plan 4 ― £25,375

Postgraduate loan ― £21,000

Deductions for:

  • plans 1, 2 and 4 remain at 9% for any earnings above the respective thresholds
  • postgraduate loans remain at 6% for any earnings above the respective thresholds

PAYE Form P60 for your employees

Form P60 pictureIf you employ staff, you must give all employees a P60 at the end of each tax year, if they are working for you on 5 April.  This must provide this by 31 May, on paper or electronically.  You can either:

You can’t download blank P45 and P60 forms.

Contact HMRC if you have problems ordering online, your order hasn’t arrived in 7 working days, or to order by telephone 0300 123 1074.

A P60 shows an employee the tax that has been paid on their salary during the tax year (6 April – 5 April).  They will get a separate P60 for each of their jobs.

They need this P60 to prove how much tax they have paid on their salary, for example:

  • to claim back overpaid tax
  • to apply for tax credits
  • as proof of their income if they apply for a loan or a mortgage

They can check how much tax they paid last year if they think they might have paid too much (https://www.gov.uk/check-income-tax-last-year)

Payroll – End of Year Tasks

As an employer running payroll, you need to:

  • report to HM Revenue and Customs (HMRC) on the previous tax year (which ends on 5 April 2017) and give your employees a P60
  • prepare for the new tax year, which starts on 6 April 2017
What you need to do   When
Send your final payroll report of the year   On or before your employees’ payday
Update employee payroll records   From 6 April
Update payroll software   From 6 April
Give your employees a P60   By 31 May
Report employee expenses and benefits   By 6 July

More details can be found here