Payroll Year End 2026-27: Final FPS, P60s, P11Ds and the New Tax Year

Payroll year end is the handful of weeks either side of 5 April when every UK employer closes off one tax year and opens the next. Get it right and nobody notices; get it wrong and you're sending corrections, reissuing P60s and answering questions from staff with the wrong tax code. This guide is for small business owners and bookkeepers running payroll for the 2026-27 tax year, which ends on 5 April 2027. It covers each deadline, the final FPS and EPS, week 53, P60s and P11Ds, new tax codes, and a worked checklist.

Quick answer

For 2026-27, send your final FPS (marked 'final submission for year') on or before the last payday before 5 April 2027, or a final EPS if you paid nobody in the last period. Pay month 12 PAYE by 22 April 2027, give P60s to everyone employed on 5 April by 31 May 2027, and file P11Ds and the P11D(b) by 6 July 2027, paying Class 1A by 22 July (19 July by cheque).

• 5 April 2027 is a Monday, so weekly payrolls paid on Mondays have a week 53

• Fix errors with an extra FPS up to 19 April, or a year-to-date FPS after that

• Load new tax codes (P9T, P9X) and 2026-27 software updates before the first 2027-28 pay run

• Claim the Employment Allowance again on your first 2027-28 EPS

• Company cars, fuel, vans and medical cover must be payrolled from 6 April 2027

What payroll year end involves

The UK tax year runs from 6 April to 5 April. Under Real Time Information (RTI), you report pay and deductions to HMRC every payday on a Full Payment Submission (FPS), so most of the year-end work is already done by the time 5 April arrives. What's left is telling HMRC the year is complete, giving employees their annual summaries, reporting benefits that weren't run through payroll, and setting the payroll up for the new year.

The jobs fall into three windows. Before 5 April you check your figures and send the final FPS or EPS. Between 6 April and the end of May you load new tax codes, correct any errors, pay the final month's PAYE and hand out P60s. By early July you file P11Ds for benefits in kind and pay Class 1A National Insurance in July. Small employers who pay HMRC quarterly follow the same filing dates; only the payment pattern differs.

Payroll year end is separate from your company's accounting year end. A company with a 31 December year end still closes its payroll on 5 April, and the payroll figures feed into its accounts and Corporation Tax return in the usual way.

Payroll year-end dates for 2026-27

Last payday on or before 5 April 2027

Final FPS marked 'final submission for year' (or final EPS)

5 April 2027 (Monday)

Tax year ends; week 53 for Monday weekly payrolls

6 April 2027

New tax year: new codes, thresholds and Employment Allowance claim; mandatory payrolling phase 1 starts

19 April 2027

Last day to correct with an additional FPS showing 0 pay in period

22 April 2027

Month 12 PAYE payment due electronically (19 April by post)

31 May 2027

P60s to every employee on the payroll at 5 April

6 July 2027

P11Ds, P11D(b) and employee copies

22 July 2027

Class 1A National Insurance payment (19 July by cheque)

22 October 2027

PAYE Settlement Agreement tax and Class 1B

Before 5 April: checks that save corrections later

Most year-end problems begin months earlier: a leaver who was never reported, a new starter on the wrong tax code, a director's National Insurance worked out on the wrong basis. Spend an hour on these checks in March and you'll rarely need a correction.

Start by reconciling the payroll to what you've paid HMRC. Your year-to-date totals for tax, employee and employer National Insurance, student loans and statutory payments should match the FPS submissions and, after the Employment Allowance and any statutory pay recoveries, the payments you've made. Check that the Employment Allowance was claimed on an EPS for the year and how much is left; unused allowance doesn't carry forward. See our Employment Allowance guide for late claims.

Then look at people. Anyone who left during the year should have a leaving date on an FPS and a P45. Anyone still on the payroll but not paid for months needs either a leaving date or a reason. Directors are worth a separate look: their National Insurance uses an annual earnings period, so the final pay run may produce a catch-up figure if contributions weren't spread evenly. Student loan plans should match the latest SL1 notices; our student loan deductions guide explains the rules.

Finally, list every benefit in kind you provided: company cars, private fuel, vans, health insurance, loans to employees or directors. If you payroll any of them, check the amounts in the payroll; if not, start collecting the details you'll need for the P11Ds in July.

Before the final pay run of 2026-27

0/8

• Year-to-date tax, NI and student loan totals reconcile to FPS submissions and HMRC payments
• Employment Allowance claimed for 2026-27 and usage checked
• All leavers have a leaving date on an FPS and a P45
• Directors flagged as directors, with NI on the annual or alternative basis
• Student loan plans match the latest SL1, SL2, PGL1 and PGL2 notices
• Week 53/54/56 checked against your pay calendar
• List of benefits in kind, list prices and dates ready for P11Ds
• Software provider's 2026-27 year-end and 2027-28 updates installed

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The final FPS and final EPS

Your last FPS of the tax year is sent as usual, on or before payday, with one extra step: answer "Yes" to the "Final submission for year" question. That tells HMRC there will be no more regular submissions for 2026-27. If you run more than one payroll under the same PAYE reference, put the final indicator on the last report covering the whole scheme.

You send a final EPS instead, with the final-submission indicator, if any of these apply:

• you forgot to mark your last FPS as final;
• your software doesn't have the final-submission field on the FPS;
• you didn't pay anyone in the final pay period;
• you sent your final FPS early and then paid nobody for one or more whole tax months before 5 April.

The final EPS is also where you report anything that reduces your PAYE bill for the last month, such as recoverable Statutory Maternity or Paternity Pay, and where you tell HMRC if the scheme has ceased.

Week 53 in 2026-27

Fifty-two weeks are 364 days, so every tax year has a day or two left over after tax week 52. In 2026-27 the leftover day is Monday 5 April 2027. If you pay weekly and your payday is a Monday, that last payday is tax week 53. Fortnightly and four-weekly payrolls may also have an extra period (reported as 54 and 56) depending on where their cycle falls. Your software handles the calculation: week 53 pay is taxed on a non-cumulative basis with one week's allowance, which can leave some employees slightly underpaid. HMRC sends a P800 to anyone who owes tax as a result. Don't change the employee's tax code to week 1 on the FPS just because the week 53 payment was worked out that way.

Fixing mistakes after the final submission

Mistakes found after the final FPS are corrected by sending another FPS for the year you're fixing. HMRC's guidance splits corrections by date.

CWG2 allows corrections to original FPS or EPS information for up to six years after it was filed. A correction that changes the tax owed also changes what you should have paid HMRC, so make any extra payment promptly to limit interest. If an employee's tax code was wrong all year, HMRC will usually collect or refund the difference from the employee directly once your corrected figures arrive.

P60s: who gets one and by when

A P60 is the employee's end-of-year certificate. It shows their total pay and tax for the year, their National Insurance, student and postgraduate loan deductions, their final tax code, and any statutory payments. Employees need it to check their tax, claim refunds, complete a Self Assessment return, or prove income for a mortgage or tenancy.

You must give a P60 by 31 May to every employee who was on your payroll and working for you on 5 April. People who left before then don't get one: their P45 shows the same information for their time with you. Each employee gets only one P60, even if they left and rejoined during the year. Payroll software produces P60s from the year-end figures, and HMRC doesn't need to approve the layout of substitute P60s generated by software. Employers exempt from online filing can order blank P60s from HMRC.

If you later correct an employee's figures, give them a replacement P60 marked "Replacement", or a letter confirming the change. An employee who hasn't received a P60 by 31 May should ask you first and, if that fails, contact HMRC.

P11Ds, the P11D(b) and Class 1A

Benefits and expenses that weren't processed through payroll are reported after the year end. For 2026-27 you must, by 6 July 2027, send HMRC a P11D for each employee or director who received taxable benefits, give each of them a copy, and send a P11D(b) declaring the total Class 1A National Insurance. Class 1A is due at 15% of the taxable value and must be paid by 22 July (19 July by cheque). A late P11D(b) costs £100 per 50 employees for each month or part month. If you payrolled benefits, you don't send P11Ds for them, but you still need the P11D(b) for the Class 1A.

If you have a PAYE Settlement Agreement for minor or irregular benefits, the tax and Class 1B on it are due by 22 October (19 October by cheque) 2027.

The 2026-27 P11D round matters more than usual because it's the last one for company cars, car fuel, vans, van fuel and employer-provided medical cover. From 6 April 2027, those benefits must be payrolled, with tax and Class 1A reported in real time; most other benefits follow from 6 April 2028, while loans and living accommodation stay voluntary. HMRC says its final phase 1 guidance will be aligned with the Autumn Budget on 28 October 2026, so check with your software provider early in 2027. Our P11D guide and company car tax guide cover the calculations.

The year-end deadlines in numbers

31 May

P60s to employees

Everyone on payroll at 5 April

6 July

P11D, P11D(b), employee copies

15%

Class 1A on benefits

Paid by 22 July (19 July by cheque)

£400

Top monthly late FPS penalty

250+ employees

Setting up the new tax year

From 6 April 2027 every employee needs a payroll record for the new year with the right tax code. HMRC sends two kinds of notice through PAYE Online (and your software can usually download them):

• P9T notices give a new code for a specific employee, for example because a benefit in kind or underpayment has changed it;
• P9X gives general changes for codes ending in L, M or N, such as an uplift if the personal allowance changes.

Personal allowance is frozen at £12,570, so in recent years most L codes have carried forward unchanged as 1257L. Apply P9T notices from the date shown. For a new starter without a P45, use the starter checklist; if nothing is available, the emergency code for 2026-27 is 1257L (W1/M1/X), and HMRC will publish any 2027-28 change.

Update your software before the first 2027-28 pay run so it uses the new Income Tax, National Insurance and student loan thresholds. Anyone using HMRC's Basic PAYE Tools on a version older than 14.2.14330.88 must reinstall; later versions update automatically.

Some jobs restart every April. The Employment Allowance has to be claimed again on an EPS for 2027-28. New National Minimum Wage rates normally apply from 1 April, so check pay for hourly staff. Company cars and other phase 1 benefits need to be set up as payrolled benefits from 6 April 2027.

Worked example: a small company's year end

Harbour Joinery Ltd runs a monthly payroll on the last working day of the month. In 2026-27 it has a director on £12,570, three employees on £24,000 to £32,000, and an apprentice who left in February. The director drives an electric company car with a list price of £35,000.

A few points stand out. Because the payday is monthly and the last one falls on 31 March, the final FPS goes on that date and there's nothing to report for the five days to 5 April. The director's National Insurance runs on an annual earnings period, so the March run checks the whole year's contributions. The car is the last time this company will use a P11D for it: from April 2027 the benefit is taxed through the director's payslip and the Class 1A is reported in real time.

Penalties and common mistakes

HMRC charges late filing penalties if an FPS arrives after payday, scaled by the number of employees: £100 a month for 1 to 9, £200 for 10 to 49, £300 for 50 to 249 and £400 for 250 or more. There's no penalty if the FPS reports payments within three days of payday (although HMRC may still contact employers who rely on this regularly), and the first late FPS in a tax year is normally let off. Late PAYE payments, which are due by 22nd of the next tax month (19th by post), can bring separate penalties and interest.

Common year-end mistakes:

Not marking the final submission. Easy to fix with a final EPS, but HMRC may chase you until it arrives.

Issuing P60s to leavers. Staff who left before 5 April should have a P45 and no P60.

Ignoring week 53. If you pay weekly on Mondays, your 2026-27 calendar has 53 paydays; check that your software numbers the last one correctly.

Forgetting benefits. A director's company car or health insurance still needs a P11D for 2026-27, even if the business plans to payroll it from April 2027.

Carrying over last year's Employment Allowance. The 2027-28 claim needs a new EPS.

Not keeping records. Keep payroll records, HMRC notices and calculations for at least three years after the end of the tax year, and available to HMRC on request.

Budget 28 October 2026: what could change for 2027-28

The Budget on 28 October 2026 will shape the 2027-28 payroll set-up. National Insurance thresholds are already frozen to April 2031, and HMRC has said final guidance for mandatory payrolling of benefits will align with the Budget, so watch for any change to the April 2027 start. New National Minimum Wage rates, Statutory Sick Pay and family pay rates for 2027-28 are normally confirmed around the Budget. HMRC publishes its rates and thresholds for employers for 2027-28 before the new year; we'll update this guide once they're out.

Official links

• Payroll: annual reporting and tasksFinal FPS/EPS, corrections, P60s
• Employer further guide to PAYE and NICs (CWG2) 2026 to 2027The full employer rulebook
• Expenses and benefits: deadlinesP11D, Class 1A, PSA
• Late payroll reporting penaltiesFPS penalty amounts
• Mandatory payrolling of benefits in kindPhases from April 2027

What to do next

Put the dates above in your diary now, check your pay calendar for week 53, and ask your software provider when its 2027-28 update and payrolled-benefits features will be ready. Before the final pay run, work through the checklist, then claim the Employment Allowance on your first EPS of the new year. If you're new to running payroll, start with registering as an employer; the salary slip generator helps you check payslips line by line.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

When is the payroll year end for 2026-27?

The tax year ends on 5 April 2027 and the new one starts on 6 April 2027. Your final Full Payment Submission is due on or before the last payday of the year, P60s go to employees by 31 May 2027, and P11Ds and the P11D(b) are due by 6 July 2027. Month 12 PAYE is paid by 22 April 2027.

How do I mark my final FPS?

Answer 'Yes' to 'Final submission for year' on the last FPS you send for the tax year, sent on or before the last payday. If you forgot, if your software doesn't have the field, or if you paid nobody in the last pay period, send an EPS marked as final instead.

When do employees need their P60?

By 31 May. Every employee on your payroll and working for you on 5 April gets one P60 showing their pay, tax, National Insurance and student loan deductions for the year. Staff who left before 5 April don't get a P60, because their P45 already shows the same figures for their time with you.

What if I find a payroll mistake after the year end?

Up to 19 April, send an additional FPS with the corrected year-to-date figures and 0 in 'pay in this period'. From 20 April, send an FPS with the correct year-to-date amounts for the year you're fixing. If the correction changes a P60 you've already given, issue a replacement P60 or a letter confirming the change.

Is there a week 53 in 2026-27?

Only for some employers. The last day of the tax year, 5 April 2027, is a Monday. If you pay weekly and your payday falls on that date, you'll have 53 paydays and the last one is tax week 53. Fortnightly and four-weekly payrolls can have an extra period (week 54 or 56) depending on their cycle. Your payroll software works out the tax on a non-cumulative basis.

What penalties apply for late year-end reporting?

A late FPS can bring a monthly penalty from £100 (1 to 9 employees) to £400 (250 or more), and a late P11D(b) costs £100 per 50 employees for each month or part month. Late payments of PAYE or Class 1A attract penalties and interest.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 11 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Payroll: annual reporting and tasks (full guide) — HMRC / GOV.UK · accessed 11 October 2026
2. 2.2026 to 2027: Employer further guide to PAYE and NICs (CWG2) — HMRC · accessed 11 October 2026
3. 3.PAYE61185 — Form P60 — HMRC manual · accessed 11 October 2026
4. 4.Expenses and benefits for employers: deadlines — HMRC / GOV.UK · accessed 11 October 2026
5. 5.What happens if you don't report payroll information on time — HMRC / GOV.UK · accessed 11 October 2026
6. 6.Pay employers' PAYE — HMRC / GOV.UK · accessed 11 October 2026
7. 7.Rates and thresholds for employers 2026 to 2027 — HMRC / GOV.UK · accessed 11 October 2026
8. 8.The phased introduction of mandatory payrolling for benefits in kind — HMRC · accessed 11 October 2026