Preparing for year-end payroll and pensions reporting
As the financial year draws to a close, payroll and pensions reporting becomes a priority for businesses of all sizes. Whether you rely on an outsourced payroll provider or manage everything in-house, getting year-end processes right is critical. Errors or delays can lead to penalties, compliance issues, and unnecessary stress for both employers and employees.
This guide highlights the key areas to focus on and how to prepare your payroll and pensions reporting effectively.
Why year-end payroll matters
Year-end payroll reporting ensures HMRC and pension providers have accurate records of employee earnings, deductions, and contributions. It also provides employees with the information they need for their own tax returns, including their P60s and, if relevant, P11Ds.
Mistakes or oversights can have knock-on effects: incorrect PAYE submissions, pension contributions not aligning with legal requirements, or employees being left without the right tax documentation. Preparing early helps reduce the risk of compliance failures.
Key steps to prepare for year-end payroll
- Review employee data
Check that employee details names, addresses, dates of birth, and National Insurance numbers, are up to date. Small errors can cause delays in HMRC processing or lead to rejected submissions. - Reconcile payroll records
Compare payroll data with your financial accounts to ensure all pay, tax, and National Insurance contributions align. Reconciling monthly or quarterly reduces the year-end workload. - Submit final FPS and EPS
Your final Full Payment Submission (FPS) and Employer Payment Summary (EPS) to HMRC must be accurate and timely. Missing deadlines can result in penalties. - Prepare employee P60s and P11Ds
By 31 May, employees must receive their P60s summarising their pay and deductions. If benefits or expenses were provided, P11Ds (and the P11D(b) form for Class 1A NICs) may also be required by 6 July. - Check pension contributions
Ensure all pension contributions have been reported correctly and paid to providers on time. Review auto-enrolment obligations and re-enrolment dates, as these may coincide with your year-end responsibilities.
Avoiding common pitfalls
• Last-minute checks – Leaving reconciliations until the last week increases the chance of errors.
• Incomplete pension data – Missed contributions can cause compliance issues with The Pensions Regulator.
• Missed deadlines – HMRC charges penalties for late FPS submissions and incorrect reporting.
• Unclear responsibilities – For businesses using outsourced providers, confirm who handles which submissions to avoid duplication or gaps.
How outsourced payroll providers add value
Even if you have an internal payroll team, outsourcing year-end tasks can offer extra assurance. Providers bring specialist knowledge, updated systems, and compliance expertise. They can handle HMRC submissions, pension reconciliations, and P60 distribution efficiently, giving business owners peace of mind.
Final thoughts
Year-end payroll and pensions reporting doesn’t have to be stressful. With good preparation, accurate data, and clear processes, you can meet deadlines confidently and keep your employees informed. Whether managed in-house or through a payroll provider, the focus should always be on accuracy, compliance, and timeliness.
If you’d like expert support with your year-end payroll and pensions reporting, our team can help. We work with both business owners and finance teams to ensure compliance, reduce risk, and save valuable time.
Get in touch today to discuss how we can support your payroll year-end process.