The new tax year starts on the 6th April, as part of the year-end process, there are a couple of things that need to be considered going into the new tax year along with the deadlines associated.

Submit your final payroll RTI file for the tax year.
Provide employees with a P60.
Roll forward any benefits.

Final payroll submission.

When you have finished processing all of your pay runs for the year, you need to notify HMRC. You can do this within the RTI files by sending a Final Submission Indicator. Only submit this to HMRC when you do not expect any further submissions for that tax year, as it will close your payroll for that year.

The platform will automatically populate the final pay run indicator if it is the last period of the tax year, for example, month 12, but you can un-tick this choice if needed. If for any reason you miss sending in the full payment summary (FPS) for your final pay run, you can manually set this flag within the employment payment summary (EPS) to notify HMRC instead.

If you are processing multiple payment frequencies under the same PAYE reference, flag, the final pay run in the last FPS you send. The deadline for the final submission to be filed with HMRC is the 19th April 2023.

P60 certificates.

When you have processed and finalised the last pay run for the tax year, you can then issue P60s to employees. However, keep in mind this is only required for employees in employment on the 5th April. For employees that have left before this date, they will have received a P45 instead. You can read more on P60s in the following article.

If you have automated your pay run, and you have selected the option to send employee notifications, we will then publish P60s automatically. You can find further guidance on pay-run automation in the following article. The deadline you to issue P60s to employees is the 31st May 2023. We will create an action item in the dashboard to remind you of this date.

Benefits

Any benefits you have payrolled or reported via P11D for 2022/23, if they are required for 2023/24, you need to rolls these into the new tax year. Within the benefits section of the business there is a year-end option that will take you through the whole process.

New tax year 2023/24

Updates applicable for the new tax year. These will be applied automatically unless stated otherwise.

Tax code uplifts: There are no uplifts for 23/24 tax year, standard/emergency tax code remains at 1257L. Week one month one status will clear down when you create your first pay run in the new tax year; please allow extra time for this process.
Tax thresholds: Slight change to England/Northern Ireland and Wales, percentage thresholds remain the same but additional rate now kicks in at £125,140 above. Scotland's higher rate tax has increased to 42% with the top rate now at 47% and a threshold of £125,140 above.
National insurance % rates: These carry over with the obvious reduction of the 1.25% 'Health and social care levy'. Employee 12% to UEL, 2% above, Employer 13.8%. The same rates will apply to Directors going forward.
National Minimum Wage/National Living Wage: From April the 1st, 23+ rate £10.42 with weekly accommodation at £63.70.
Statutory Sick Pay: Increased to £109.40.
Statutory Parental Pay: Increased to £172.48 applicable from April 2nd.
Student loans: Plan one earning threshold increased to £22,015; plan 2, and postgraduate loans no change. Scottish student loan plan four increased earnings threshold of £27,660.
Automatic enrolment: No-change, earnings trigger remains at £10,000.
Employment allowance: Remains at £5,000. For the 2023/24 tax year we have copied over any previous settings that have been applied for Employment Allowance; you need to check these settings to make sure they still apply.
Scottish earnings arrestment: New rates have been published for April 2023.
Flat rate van benefit charge: Increases to £3960.
Flat rate van fuel benefit charge: Increases to £757.
Car fuel benefit multiplier: Increases to £27800.

If you have a director set up in the payroll platform, at month 12, the platform will calculate any National Insurance due based on the earnings for the whole year. The final reassessment is to make sure the correct deductions have been made for the full year.

When creating a pay run it is the pay date that determines the tax period, so any pay runs with a pay date of the 6th April onwards will be created in the new tax year. If you have published the P60s and then process a pay run for the tax year they cover, you will need to re-publish any employee P60s affected. National minimum wage increases apply to the next full pay reference period after the 6th April, this is not necessarily the next pay date after the 6th April.