Payroll Deadlines: What Business Owners Need to Keep Track Of

Payroll deadlines are a critical aspect of business management, ensuring that employees are paid accurately and on time while remaining compliant with HMRC regulations.

Missing or failing to meet payroll deadlines can result in costly fines, penalties, and strained employee relationships.

For business owners, understanding the key payroll deadlines and staying on top of these important dates is essential for maintaining smooth operations. This guide outlines the major payroll deadlines business owners must track throughout the year.

Key Payroll Deadlines

End of Financial Year

The end of the financial year is one of the most crucial dates for businesses, as it marks the close of the tax period and the final opportunity to review payroll records before filing year-end submissions. The UK’s financial year ends on 5th April each year. At this point, businesses must prepare to complete final payroll reports, which include the Final Full Payment Submission (FPS) and Employer Payment Summary (EPS).

It’s important to ensure that all payroll data is accurate and up to date before this date, including employee earnings, tax codes, and any outstanding adjustments. Missing this deadline can result in penalties, and it may cause delays in processing the following year’s payroll.

Final Full Payment Submission (FPS)

The Final Full Payment Submission (FPS) is a critical part of the payroll year-end process. This submission must be sent to HMRC by 5th April, ensuring that all pay and tax details for the year are correctly reported. This includes salaries, bonuses, tax deductions, and National Insurance contributions for every employee.

It’s vital that payroll teams double-check all employee records before submitting the FPS. If there are any discrepancies, they must be addressed before the final submission to avoid penalties or the need for retrospective amendments.

Employer Payment Summary (EPS)

The Employer Payment Summary (EPS) is a report submitted to HMRC that outlines any statutory payments (such as maternity or paternity pay) an employer has made to employees during the year, as well as any adjustments to the figures reported in previous submissions.

The EPS is due by 19th April, and failure to submit it on time can lead to missing out on recoverable statutory payments, which could negatively affect the business’s cash flow. Therefore, it’s important to ensure that the EPS is submitted by this date and includes all relevant adjustments.

Issuing P60s

A P60 is a document that provides employees with a summary of their total pay and the taxes deducted during the financial year. This document is essential for employees completing their self-assessment tax returns and verifying their tax records.

Employers must issue P60s to employees by 31st May. Failing to meet this deadline can result in penalties and potential disputes with employees. The P60s must be accurate, reflecting all payroll adjustments and deductions made during the year.

Benefits in Kind Registration

For businesses that offer benefits in kind (BIK) to employees, it is essential to ensure that these benefits are reported properly to HMRC. Benefits in kind can include things like company cars, private health insurance, or interest-free loans.

Employers who wish to payroll benefits in real-time must register with HMRC by 5th April. Failing to do so means that benefits must be reported via the P11D form, which involves additional administrative work. Registering early helps streamline the process and ensure compliance with tax reporting requirements.

P11D Submission

The P11D form is used to report benefits in kind provided to employees. This includes any non-cash perks, such as company cars, accommodation, or medical insurance. The P11D submission is due by 6th July, and failure to meet this deadline results in a penalty of £100 per month for every 50 employees.

Employers should ensure that all benefits are correctly recorded to avoid errors or disputes. Submitting the P11D on time helps avoid penalties and maintain accurate employee records for tax purposes.

Class 1A National Insurance Contribution

Class 1A National Insurance Contributions (NICs) are payable by employers on benefits in kind provided to employees. Employers must ensure that these contributions are calculated correctly and paid to HMRC by 19th July.

Late payments of Class 1A NICs can result in interest charges and additional penalties. Businesses should take care to calculate and submit these payments accurately, ensuring that they are made on time to avoid penalties.

Monthly Payroll FPS

For monthly payroll, employers must submit an FPS each month on or before the payday. This is a requirement for ensuring that all payroll information is reported to HMRC in real time.

Submitting the FPS late can result in automatic penalties, so it’s essential for payroll teams to stay on top of monthly deadlines. Regular audits of payroll data can help identify errors before they become problematic and ensure compliance with HMRC requirements.

Quarterly or Monthly PAYE Payments

Employers must make PAYE and National Insurance payments to HMRC on a regular basis. These payments are due on the 22nd of each month if paying electronically (or the 19th if paying by cheque). The monthly payments cover taxes withheld from employees' wages, as well as employer National Insurance contributions.

Businesses that choose to pay quarterly rather than monthly must ensure that their payments are made on time to avoid late payment charges. It’s advisable to set up automated reminders to ensure timely payments are made, helping to avoid penalties and interest charges.

Auto Enrolment Pension Contributions

Under the UK’s auto-enrolment pension scheme, employers must ensure that pension contributions for their employees are submitted and paid regularly. Failing to comply with auto-enrolment requirements can result in fines from The Pensions Regulator.

Employers must ensure that pension contributions are submitted on time for each payroll period. Regular checks with pension providers are essential to ensure that contributions are processed accurately and in line with statutory requirements.

How dhpayroll Can Help with Payroll Deadlines

Managing payroll deadlines can be challenging, especially with the various reporting requirements and deadlines that must be met throughout the year. Fortunately, payroll solutions such as dhpayroll can help streamline the process.

dhpayroll offers cloud-based payroll software that simplifies the management of payroll deadlines. The system helps automate key processes such as submitting FPS and EPS, generating P60s, and reporting benefits in kind. With reminders for upcoming deadlines and tools for generating reports, dhpayroll helps businesses stay organised and compliant, reducing the risk of missed deadlines and costly penalties.

Furthermore, dhpayroll’s support team can assist businesses in navigating complex payroll requirements, ensuring that payroll runs smoothly and deadlines are met efficiently. By using a reliable payroll solution, businesses can focus on their operations without the constant worry of missing crucial payroll deadlines.

Conclusion

Payroll deadlines are vital for ensuring compliance with HMRC and avoiding penalties. Understanding the key deadlines throughout the year, from submitting the final FPS and EPS to issuing P60s and paying National Insurance contributions, is essential for business owners. Staying on top of these deadlines helps ensure that employees are paid on time and that businesses remain compliant with tax regulations.

By leveraging the right tools and resources, such as dhpayroll, businesses can simplify the payroll process, reduce the risk of errors, and meet all necessary deadlines with confidence.