PAYE final submission

Now that you are reporting PAYE information in real time, you do not need to send forms P35 and P14 at the end of this tax year.

Instead, just send your real-time PAYE submission as normal and answer a few extra questions. It is very easy to do. This step-by-step guide shows you how.

Step 1 – identify your final submission

  • For most employers, the final submission will be the final Full Payment Submission. This is the one telling HMRC about the very last employee payment for the year. The tax year ends on 5 April so, for most employers, their final submission will be made on or before that date on a Full Payment Submission. So, for example, if you pay some employees weekly and others monthly, your final submission is the last one of these.
  • Before sending it, you must make sure that HMRC have successfully received all earlier submissions. Your payroll software tells you when submissions have been successful.
  • If you don’t pay any employees in the final tax month of the tax year (6 March – 5 April), send HMRC your final submission for 2013-14 on an Employer Payment Summary by 19 April. 

Step 2 – complete additional questions and declaration on your final Submission

  • Confirm that this is your ‘Final Submission for the Tax Year’
  • Answer the extra questions about any special payments you made during the year, such as expenses and benefits, or overseas payments – even if you have not made any deductions of PAYE tax or National Insurance contributions from your employees in that pay period.

Don’t forget:

  • In previous years, these questions and the declaration appeared on form P35 and you had until 19 May to submit the form. Reporting in real time means that you will be sending this information in much earlier (see step 3 below) – so you may wish to make sure you have the answers to the questions ready in time. 

Step 3 – send your final submission as normal

  • The same time limits as normal apply to this submission. So, unless an exception applies, you should send your final submission on or before the date of your last employee payment in the tax year (or by 19 April if you are sending an Employer Payment Summary).
  • Your payroll software will tell you whether your submission was successful, so you don’t need to ask HMRC whether we’ve received it.

Don’t forget:

  • Penalties may apply for late submissions.
  • You still need to provide each of your employees with a form P60 by 31 May.
  • You must send any expenses and benefits annual return – forms P11D, P9D and P11D(b) – to HMRC by 6 July.

Questions and answers

Sent the wrong payroll information?

  • Before 20 April just correct the year-to-date figure and send an additional submission for the year Please don’t:
    • include any payments after 5 April.
    • complete the additional questions and declaration again.
  • If it is on or after 20 April, you should correct the year’s information by sending an Earlier Year Update as soon as possible. Please note that HMRC cannot accept Full Payment Submissions after 19 April.

Don’t forget: 

  • An Earlier Year Update should report only the differences to the latest amounts already reported for the tax year. For example, if a figure previously reported as:
    • £1900 should have been £2300, the EYU should show ‘£400’ – not £2300.
    • £1,000 should have been £700, the EYU should report ‘-£300’ – with a minus sign in front – not £700

Forgotten to indicate that that it’s your ‘Final submission for the year’ and complete the additional questions and declaration?

  • If you’ve submitted your final Full Payment Submission, or Employer Payment Summary, for the tax year, but haven’t indicated that this is your ‘Final submission for the tax year’, you can correct this by sending an Employer Payment Summary.
  • Simply indicate that it’s your ‘Final submission for the tax year’ and complete the questions and declaration

If you can’t send an Earlier Year Update or Employer Payment Summary from your software, you can use HMRC’s free BASIC PAYE Tools. 

Final submission sent earlier in the year?

  • Even if you confirmed that this was your ‘Final submission for the tax year’ and answered the end of year declarations and questions in an earlier month, you still need to tell HMRC that you haven’t paid anyone in the later tax month to avoid them estimating a charge.
  • So, if you made your final payments to your employees in tax month 10 and indicated on that Full Payment Summary that it was your ‘Final submission for the tax year’ and answered the end-of-year declarations and questions,you must still:
    • send HMRC an Employer Payment Summary by 19 April.
    • complete its ‘No payment dates’ or ‘Period of inactivity’ fields to show that you won’t be sending a Full Payment Submission for tax months 11 and 12.

Please do not confirm this is the ‘Final submission for the tax year’ if your PAYE scheme has ceased. Instead, you should use the ‘Ceased indicator’, and show the date the PAYE scheme ceased.