Tax Year 2024/25

When you have finished processing all of your pay runs for the year, you need to notify HMRC. This is done within the RTI files by sending a 'final submission indicator'. When this is submitted, HMRC will not expect any further submissions for that tax year and will effectively close the payroll for that year.

The platform will automatically populate the final pay run indicator if it is the last period of the tax year, e.g month 12 (this can be unticked if required). If for any reason you miss sending this 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.

Note: 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 2025.

When you have processed and finalised the last pay run for the tax year, you can then issue P60s to employees. This is only required for employees in employment on the 5th April. Employees that have left before this date will have received a P45 instead. Guidance for P60s can be found here.

Note: If the pay run is automated, and the option to send employee notifications has been selected, then P60s will be published automatically. Further guidance on pay run automation can be found here.

The deadline for P60s to be issued to employees is 31st May 2025. An action item will be created in the dashboard to remind you of this.

Any benefits you have payrolled or reported via P11D for 2024/25, if they are required for 2025/26, these need to be rolled 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. More information about payrolling benefits can be found here. P11D information can be found here.

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

• Tax code uplifts - There are no uplifts for 25/26 tax year, standard/emergency tax code remains at 1257L. Week 1/month 1 status will be cleared down when you create your first pay run in the new tax year, please allow extra time for this process.
• Tax thresholds - No change to England/Northern Ireland and Wales, percentage thresholds remain the same. Scotland does have changes to the thresholds which will be applied.
• National Insurance - the Secondary Threshold has been reduced to £5000 per annum. There has been an increase to the main rate of Secondary (Employers) National Insurance to 15%.
• If you have any employees on NI categories F, I, L, S, N, E, D or K, you must report a workplace postcode on your FPS submission from 6th April. You will be able to enter a postcode on the Tax and NI details section for your employee if they work at a different location from the address detailed in your Business Settings.
• National Minimum Wage/National Living Wage will increase from April 1st, with the 21+ rate increasing to £12.21 with weekly accommodation to £74.62.
• Statutory Sick Pay increased to £118.75.
• Statutory Parental Pay increased to £187.18, applicable from April 6th.
• A new Statutory Payment has been introduced from April 6th, Neonatal Care Leave. This will be paid at the Statutory Parental Pay rate.
• The NIC compensation rate has been increased from 103% to 108.5% from 6th April.
• Student loan plan 1 earning threshold increased to £26065, plan 2 to £28470 and postgraduate loans to remain the same at £21000. Scottish student loan plan 4 earning threshold increased to £32745.
• Automatic enrolment - No change, earnings trigger remains at £10000.
• Employment Allowance - this will increase to £10,500 and the restriction that employers had to have a secondary class 1 NICs liability of £100,000 in previous tax year has been removed. For the 2025/26 tax year, as per HMRC’s advice, the state aid sector in your business will automatically be updated to ‘State aid rules do not apply’ but any other previous settings that have been applied for Employment Allowance will carry forward. You are able to amend if necessary but we advise you to still check your settings and submit an EPS for the first period of the new tax year to let HMRC know you are claiming the Allowance.
• The Scottish EA tables have been updated from April with the daily rate increasing to £24.66.
• Flat rate van benefit charge increases to £4020.
• Flat rate van fuel benefit charge increases to £769.
• Car fuel benefit multiplier increases to £28200.
• CO2 rates for company cars have increased for the 2025/26 tax year.

• If you have a director set up in the payroll using the standard annual calculation method, at month 12 the system will calculate any National Insurance due based on the earnings for the whole year. This final reassessment is to ensure 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.
• If you need to make any changes to the payroll after you have sent the final FPS guidance for this can be found here.
• 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.