P60, P11D, and Payroll Year-End 2026: The Complete Employer Checklist

The UK tax year ends on 5 April 2026, and that triggers a string of deadlines every employer  must meet. Miss one and HMRC penalties start within days. This checklist walks you through  every task, in order, from your final pay run to your last P11D submission, with the exact dates  you need to hit. 

We have used the latest HMRC guidance, the Chartered Institute of Payroll Professionals (CIPP),  and verified the updates make sure every figure and date here is  current as of May 2026.

Why Payroll Year-End Matters More in 2026 

Payroll year-end is more than an admin task. It is a legal closure of the tax year and the official  record HMRC, your employees, and third parties (mortgage lenders, benefits assessors, Self  Assessment teams) all rely on.

In 2026 specifically, there are three reasons to take this seriously:

• Class 1A NIC has gone up to 15% for the 2025/26 tax year. Most employers  underestimate this when budgeting for benefits. 

• This is the last full year of P11D reporting before mandatory payrolling of benefits kicks  in on 6 April 2027. Getting your data clean now saves chaos next year. 

• HMRC is moving more aggressively on payroll compliance, with automatic penalties  triggered the day a deadline passes. 

Your 2026 Payroll Year-End Timetable at a Glance 

Here is the complete schedule of statutory deadlines you need to plan around:

Step 1: Your Final Full Payment Submission (FPS) 

Your final FPS for the 2025/26 tax year must be submitted on or before your last payday that  falls in the tax year (in other words, on or before 5 April 2026). In your payroll software, this  submission must be flagged as the 'final submission of the year'. Without that flag, HMRC  keeps your PAYE record open and reconciliation problems follow. 

HMRC's official guidance confirms that there is no grace period for late FPS submissions. If you  discover an error after 19 April, you cannot use the old Earlier Year Update (EYU) any more, as 

Sage's payroll year-end guide explains. You correct mistakes through an additional FPS or  amended FPS instead.

Week 53 (and week 54 or 56) explained 

If you run a weekly, two-weekly, or four-weekly payroll and a payday falls on 5 April, you will  have an extra pay period. This is known as week 53 (or 54 or 56 for less frequent payrolls). For  2025/26, PeopleHR confirms there is no week 53, so monthly payrolls do not need a special  adjustment. Always check your payroll software for the correct handling of any extra period. 

Step 2: Issue P60s by 31 May 2026 

Every employee who was on your payroll on 5 April 2026 must receive a P60 by 31 May 2026.  This applies whether you employ one person or one thousand, and whether the employee  worked full-time, part-time, or was on maternity, paternity, or long-term sick leave. 

Employees who left before 5 April 2026 do not receive a P60 from you. They received a P45  when they left, which serves the same purpose for their period of employment with you. 

What a P60 must contain 

Each P60 must show the employee's: 

• Total taxable pay for the tax year 

• Total Income Tax deducted 

• Total National Insurance contributions (with NIC category letters) 

• Any student loan or postgraduate loan deductions 

• Statutory payments received (SMP, SPP, SAP, SSP where applicable) 

• Your employer name and PAYE reference 

Paper or electronic? Both are accepted 

Since 2016, HMRC has approved electronic P60s. A digital P60 made available through a secure  self-service portal counts as a fully compliant issue, provided the employee has clear access by  31 May. You do not have to print and post anything. 

Employees rely on their P60 for mortgage applications, Self Assessment returns, refund claims,  and benefits applications. A missing or late P60 will usually trigger employee complaints, which  often escalate to HMRC. Get this one right. 

Penalty for not issuing a P60

Failure to issue a P60 is a breach of regulation 67 of the Income Tax (Pay As You Earn)  Regulations 2003. HMRC can charge a penalty of up to £300 per employee, plus £60 per day for  continuing failure. While HMRC has historically been less aggressive on P60 penalties than on  filing penalties, do not bank on leniency. 

Step 3: P11D and P11D(b) by 6 July 2026 

If you provided any benefits in kind to employees or directors during the 2025/26 tax year, you  must report them. The P11D and P11D(b) deadline is 6 July 2026. Paper forms are no longer accepted. Submissions must go through HMRC's PAYE Online service or recognised payroll software. 

What is a benefit in kind? 

A benefit in kind is anything of value an employer provides to an employee or director that is  not salary. Common examples include: 

• Company cars and fuel 

• Private medical insurance 

• Interest-free or low-interest loans over £10,000 

• Living accommodation 

• Gym memberships 

• Assets provided for personal use 

• Some professional fees and subscriptions 

Some items are exempt and do not need to go on a P11D. These include trivial benefits (under  £50, not cash, not a reward for performance), mobile phones provided for business use, and  approved staff entertainment up to £150 per head. 

P11D vs P11D(b): what is the difference? 

The P11D is per-employee. You file one for each individual who received reportable benefits. 

The P11D(b) is the employer's overall declaration. It summarise the total Class 1A National  Insurance owed across all the benefits you have provided. You file one P11D(b) per PAYE  scheme. 

Even if you voluntarily payroll benefits already, you still need to submit a P11D(b) to declare  and pay Class 1A NIC. As Bishop Fleming explain, this stays the same for 2025/26 and 2026/27. 

Step 4: Pay Class 1A NIC by 22 July 2026

Class 1A National Insurance is the employer-only NIC you pay on the value of benefits in kind.  For 2025/26 the rate is 15%, up from 13.8% the previous year, reflecting the increase  announced in the Autumn Budget 2024. 

The calculation is simple: 

How Class 1A NIC Is Calculated 

Class 1A NIC = Total taxable value of all benefits in kind × 15% 

Example: £100,000 of benefits across your workforce = £15,000 Class 1A NIC due. This is paid annually, not through monthly payroll. 

Deadline: 19 July 2026 (post) or 22 July 2026 (electronic).

Late payment penalties 

Miss the 22 July deadline and HMRC charges interest at the current late payment rate, currently  set at around 7.75% per year. On top of interest, surcharges apply: 

• 5% penalty if unpaid after 30 days 

• An additional 5% if still unpaid after 6 months

• A further 5% if still unpaid after 12 months 

Late filing of the P11D(b) itself attracts an automatic penalty of £100 per 50 employees, per  month (or part month) that the form is late. For a business with 120 employees, that is £300 a  month from the moment you are a day past 6 July. BDO's missed-deadline guide sets this out in  full. 

Looking Ahead: Mandatory Payrolling of Benefits from April 2027 

HMRC originally planned to make payrolling of benefits in kind mandatory from April 2026.  After industry feedback, the government confirmed in April 2025 that this has been pushed  back by 12 months to 6 April 2027. 

What this means in practice: 

• From 6 April 2027, most benefits in kind must be reported in real time through payroll,  on the Full Payment Submission (FPS), rather than through annual P11Ds. • Loans and accommodation benefits will still be reported via P11D, at least for now. • Class 1A NIC will also be reported and paid through payroll from April 2027 (instead of  annually). 

• The 2025/26 tax year (filed July 2026) is the second-to-last year of traditional P11Ds for  most employers. 

• HMRC's registration facility for mandatory payrolling is expected to open in November  2026. 

Some employers are choosing to voluntarily payroll their benefits in 2026/27 as a dry run. As  BDO recommend, this gives finance and payroll teams the chance to test their systems before  mandatory reporting takes effect. Just remember: even if you voluntarily payroll, you still file a  P11D(b) and pay Class 1A NIC outside payroll for 2025/26 and 2026/27. 

Watch out for the 'double tax' overlap 

Employees moving onto pay rolled benefits in 2026/27 may have tax collected on last year's  benefits (via their tax code adjustment) and this year's benefits (via their pay packet) at the  same time. This creates a short-term squeeze on take-home pay. Communicate this to your  team before it shows up on a pay slip and causes alarm. 

Common Payroll Year-End Mistakes to Avoid

Even seasoned payroll teams trip up on the same handful of issues. Here are the ones most  likely to cost you: 

• Forgetting to mark the final FPS as the last submission of the year 

• Issuing P60s to employees who left before 5 April (only current employees should  receive one) 

• Missing the P11D(b) deadline entirely, which is the trigger for automatic penalties • Filing a P11D with incorrect benefit values, particularly on company cars and beneficial  loans 

• Not paying Class 1A NIC by 22 July, especially when staff turnover has changed your  benefits total 

• Failing to keep documentary evidence (policy schedules, employee agreements,  invoices) for at least three years 

• Assuming you do not need to file because you have nothing to report — a nil P11D(b)  return is still required if you are registered 

Most of these are caused by manual processes, last-minute work, or unclear ownership  between in-house teams and external payroll providers. 

Common Questions About Payroll Year-End in 2026 

Do I have to file a P11D if I do not provide benefits? 

Not if you are not registered for P11D reporting. But if you submitted P11D(b) last year, HMRC  will expect a nil return by 6 July. Filing nothing is treated as filing late, not as no obligation.  Confirm your registration status before assuming there is nothing to do. 

What if I made a mistake on an FPS after 19 April? 

Submit an additional or amended FPS through your payroll software. The Earlier Year Update  (EYU) was withdrawn for 2020/21 onwards. If the change affects employee tax codes, it may  trigger a code adjustment from HMRC. 

Can my accountant handle payroll year-end for me? 

Yes. A registered tax agent can manage the full year-end cycle for you, including final FPS, P60  distribution, P11Ds, P11D(b), and Class 1A NIC payment. For most small and mid-sized  employers, the cost of professional support is significantly less than the cost of a single missed  deadline. 

Should I switch to voluntary payrolling now?

If your benefits package is relatively simple (no loans, no accommodation), early adoption gives  you a useful trial run before 2027 mandatory rules. If you provide loans or accommodation,  hold off, as these will continue to be reported via P11D even after April 2027. 

This article is for informational purposes only and does not constitute tax or legal advice. Figures and thresholds are  based on HMRC guidance current as of May 2026, including the Autumn Budget 2024 changes and the April 2025  update to mandatory payrolling timelines. For advice specific to your circumstances, please speak to a qualified tax  adviser.