2025/26 tax year-end: Your employer checklist for a smooth finish

As we approach the end of the 2025/26 tax year, it’s a good time for employers to take stock and make sure everything is running smoothly. Year-end can feel overwhelming, but with a clear plan in place, you can avoid HMRC penalties, reduce last-minute admin, and keep your processes stress-free.

This blog provides a clear and practical overview of the key deadlines, actions and reporting responsibilities you’ll need to complete. Looking ahead to 2026/27, our Employer Bulletin will also highlight important updates, including rate changes, SSP reforms and more. [Insert Employer Bulletin link here].

Your essential year-end checklist (2025/26)

1. Run annual payroll for directors
   Make sure the final payroll for directors is processed and submitted by 5 April 2026.
2. Submit your final FPS
   Your last Full Payment Submission (FPS) for the tax year must also be filed by 5 April 2026
3. Pay final PAYE, tax and NI
   All remaining PAYE, tax and NI liabilities must reach HMRC by 22 April 2026.
4. Issue P60 forms
   Employees must receive their P60s by 31 May 2026.
5. Submit P11D forms
   If you provide taxable benefits, P11Ds must be submitted and copies sent to employees by 6 July 2026.
6. Submit your P11D(b)
   This form confirms your total Class 1A NIC due to HMRC. The deadline is 6 July 2026.
7. Agree your PSA
   PAYE Settlement Agreements (PSAs) must be agreed with HMRC by 6 July 2026.
8. Pay Class 1A NIC
   Payment is due by 22 July 2026.
9. Register for payrolling benefits
   Register before 6 April 2026 if you plan to payroll BIKs for the following tax year.

Benefits in kind

Common benefits-in-kind to check

• Company cars and fuel
• Private medical insurance
• Loans with low or no interest
• Gym memberships and wellbeing packages
• Living accommodation
• Mobile phones and IT equipment
• Vouchers and non-cash gifts
• Medical cash plans

How to report benefits-in-kind

P11D reporting
A P11D form is required for each employee receiving taxable benefits in the 2025/26 tax year.

Payrolling BIKs
A convenient way to process benefits in real time – registration must be completed by 5 April 2026 for the 2026/27 tax year.

PAYE Settlement Agreement (PSA)
Useful for minor, irregular or hard-to-value benefits. Must be agreed with HMRC by 6 July 2026.

Preparing for the new SSP rules

• Review your absence and payroll systems to make sure they can support the new SSP rules.
• Update internal policies and staff handbooks to reflect new eligibility criteria and evidence requirements.
• Train managers and administrators so they understand the new processes before they go live.
• Communicate clearly with employees to avoid confusion around sickness reporting and entitlements.

Accurate reporting and good record-keeping help protect your organisation from HMRC penalties. Whether you’re handling payroll in-house or working with a provider, now is the perfect time to make sure everyone is up to speed on year-end processes and the incoming SSP changes.

Our Payroll and Employer Services teams are here to help you navigate year-end with confidence.

Need help?

If you’d like support with your year-end responsibilities or preparing for the new SSP rules, we’re here to help.

Get in touch with your usual Larking Gowen contact or email enquiry@larking-gowen.co.uk

Dannielle Chapman