Finalising Your 2024-2025 Tax Year: Payroll and Tax Return Tips

kjbinternational
Mar 26
3 min read

As we approach the end of the 2024-2025 tax year, it's crucial to ensure your payroll and tax returns are in order for a smooth transition into the 2025-2026 tax year. Whether you're managing payroll for employees or filing a tax return as a self-employed individual, here's a comprehensive guide to help you stay compliant with UK tax regulations.

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Payroll: Key End-of-Year Tasks

Employers have several important steps to complete when wrapping up the tax year. Here's what you need to do:

1. Send Your Last Full Payment Submission (FPS)

Your final FPS must be submitted to HMRC on or before your employees' last payday of the tax year (5 April 2025). This report ensures that all pay, tax, and National Insurance contributions (NICs) are correctly recorded.

2. Confirm Your Final Submission

When sending your last FPS, check the box confirming that it's your final submission for the tax year.
If you need to send an Employer Payment Summary (EPS), ensure that it is submitted by 19 April 2025 to report any statutory payments or deductions.

3. Update Your Payroll Software

Most payroll software will require an update to reflect new tax codes, National Insurance thresholds, and any changes introduced by HMRC for the new tax year. Ensure your software is up to date to prevent errors in the 2025-2026 tax year.

4. Issue P60s to Employees

By 31 May 2025, employers must provide all employees who were working on the last day of the tax year (5 April 2025) with a P60. This document summarises their total pay and deductions for the year and is essential for tax purposes.

5. Enter New Tax Codes for 2025-2026

HMRC will issue updated tax codes for employees where applicable.
Ensure that these new tax codes are correctly entered into your payroll system before processing payments for the new tax year.

Self-Employed Individuals: Preparing for Your Tax Return

If you are self-employed, you'll need to prepare your Self Assessment tax return. Here's what you should do:

1. Gather and Organise Your Records

Ensure you have all necessary documents, including:

Invoices and receipts for business expenses
Bank statements
Records of income earned during the tax year
Any pension contributions or allowable deductions

2. Check Key Deadlines

Paper tax returns are due by 31 October 2025.
Online tax returns must be submitted by 31 January 2026.
Any tax owed must also be paid by 31 January 2026.

3. Claim All Eligible Expenses

Reduce your tax liability by claiming allowable expenses such as:

Office costs (e.g., rent, utilities, equipment)
Travel expenses for business purposes
Professional fees (e.g., accountant costs)
Marketing and advertising costs

4. Pay Any Remaining Tax

If you have outstanding tax from the 2024-2025 tax year, ensure you make the necessary payments to avoid penalties.

Final Thoughts

Taking the time to finalise your payroll and tax return correctly can save you from potential errors, fines, and unnecessary stress. Ensure you meet all deadlines and use HMRC's resources for additional guidance if needed. By staying organised and proactive, you can transition smoothly into the 2025-2026 tax year with confidence.