Payroll Year End Guide UK 2025/26: P60, P11D, and Employer Deadlines

The UK payroll year end runs from early April through July, with several compliance deadlines for employers and important documents for employees.

This guide covers the year end process for both employers (what to file and when) and employees (what documents to expect and what to do with them).

Key Payroll Year End Dates: 2025/26

For Employers: Payroll Year End Process

Step 1: Complete the Final Payroll Run

Before 5 April, ensure your final payroll run for 2025/26 includes:

• All payments made in the 2025/26 tax year
• Correct tax codes for all employees
• National Insurance contributions at correct rates
• Student loan deductions (correct plan for each employee)
• Pension contributions correctly reflected

Step 2: Submit Final RTI

Real Time Information (RTI) requires employers to report PAYE data to HMRC on or before each payday. The year end wrap-up requires:

Full Payment Submission (FPS):

• Final FPS for 2025/26 must include indicator that it is the last submission of the year
• Must be submitted by 19 April 2026 (or the date of the last payday if before that)

Employer Payment Summary (EPS):

• If you have no payments to report in the final period, submit an EPS instead
• Used to claim statutory payments (SMP, SSP) reductions and CIS deductions

How to submit: Most payroll software (Xero, QuickBooks, Sage, Brightpay) handles RTI submission automatically. In-house payroll teams should check their software’s year-end process.

Step 3: Issue P60s by 31 May 2026

Every employee who was on your payroll on 5 April 2026 must receive a P60 by 31 May 2026.

P60 must show:

• Employee name and NI number
• Total taxable pay in the tax year
• Total income tax deducted
• National Insurance contributions (employee and employer NI band totals)
• Student loan deductions (if applicable)
• Pension contributions (if via net pay arrangement)
• Tax code at 5 April

Format: Can be issued electronically (PDF via payroll portal) or paper. Most payroll software generates these automatically.

Employees who left: Do not receive a P60 for that employment — they will have received a P45.

Step 4: Submit P11D Forms by 6 July 2026

P11D forms report benefits in kind and expenses provided to employees that are not included in PAYE.

Common benefits requiring P11D:

• Company car (section car benefit value)
• Private medical insurance (cost to employer)
• Interest-free or cheap loans over £10,000
• Gym membership
• Non-reimbursed business expenses
• Accommodation provided

Employee-only exemptions (no P11D needed):

• Trivial benefits (individual value under £50, not cash, not contractual)
• Benefits covered by a PAYE Settlement Agreement (PSA)
• Benefits fully covered by employee contribution
• Qualifying homeworking amounts

Process:

1. Gather records for all benefits provided in 2025/26
2. Calculate the taxable value of each benefit using HMRC rules
3. Submit P11D online via HMRC’s PAYE Online service or payroll software
4. Issue a copy of each employee’s P11D to them by 6 July
5. Submit P11D(b) (employer’s declaration of the total Class 1A NI due)

Step 5: Pay Class 1A National Insurance

Class 1A NI is due on the value of most benefits reported on P11D.

Rate: 13.8% on the taxable value of benefits (2025/26)

Payment deadlines:

• By cheque: 19 July 2026
• Electronically (bank transfer/Bacs): 22 July 2026

Step 6: Issue New Tax Codes

From 6 April 2026, HMRC will have issued updated P9 tax code notifications for your employees. Apply these from the first payday on or after 6 April.

Common reasons codes change:

• Benefits in kind adjustment (company car etc.)
• Prior year underpayment being collected
• Marriage Allowance changes
• Income changes affecting HICBC coding adjustments

For Employees: Documents and Actions

Your P60 — What to Check

Receive your P60 by 31 May. When it arrives:

Keep your P60 permanently. You’ll need it for:

• Mortgage applications (lenders want last 1–2 years’ P60s as income evidence)
• Pension traces
• Self Assessment returns
• Benefits calculations
• Tax rebate claims

You can also download previous P60s via your Personal Tax Account at gov.uk if you’ve lost one.

Your P11D — What to Check

Receive your P11D (if you have benefits in kind) by 6 July.

Check:

• Benefits are accurately described — errors can inflate your tax bill
• Company car: fuel type, list price, CO2 emissions — all affect the benefit value
• Medical insurance: the insured cost (what the employer pays) should be listed

Impact: Benefits on your P11D increase your taxable income. HMRC will adjust your tax code to collect the tax on these benefits — usually through next year’s code. If you received P11D benefits for the first time, expect your code for 2026/27 to reflect a deduction.

P45 — If You’ve Changed Jobs

If you changed jobs during the year, you should have a P45 from your previous employer. This tells your new employer your pay and tax to date so they apply the right code.

If you lost your P45: Give your new employer a Starter Checklist (the replacement document) — choose the declaration that best reflects your employment history. Your tax may be slightly off initially but will correct once HMRC processes your records.

Checking for a Tax Refund

After receiving your P60, if you believe you’ve overpaid tax during the year:

1. Check via HMRC’s Personal Tax Account (sign in at tax.service.gov.uk)
2. HMRC may send a P800 letter automatically (usually June–October)
3. Self Assessment filers: Overpayment will appear in your return
4. Non-Self Assessment employees: Use the HMRC online claim or wait for P800

You can claim refunds going back 4 tax years.

Payroll Year End Checklist

For Employers

For Employees

Related Guides

• Tax Year End Checklist: Everything Before 5 April
• New Tax Year Checklist: What to Do from 6 April
• How to Check Your Tax Code is Correct
• Self Assessment: Who Needs to File?