What to Check Before Running Your Final Payroll of the Tax Year

Running the final payroll of the tax year is one of the most important tasks in the payroll calendar. This payroll marks the close of the current tax year and sets the foundation for the next one, so a few careful checks now can help you avoid errors, rework, and potential HMRC issues later.

Before you process your final payroll of the tax year, make sure you’ve reviewed the following areas.

1. Employee details are up to date for the tax year

Before the tax year ends, confirm that all employee records are accurate. This includes checking that:

• Names and addresses are correct
  
• Starters and leavers have been properly recorded during the tax year
  
• Tax codes and National Insurance categories are correct
  

Errors in employee details at the end of the tax year can easily roll over into the new tax year, creating avoidable issues down the line.

2. Year-to-date figures look correct

The end of the tax year is the ideal time to review year-to-date payroll figures. Take time to sense-check:

• Gross pay totals for the tax year
  
• Income tax and National Insurance deductions
  
• Pension contributions made during the tax year
  

If something doesn’t look right, it’s far easier to correct it before the tax year closes than to fix it retrospectively.

3. Pension contributions are accurate before the tax year closes

Pensions are a critical focus at tax year end. Before running your final tax year payroll, make sure that:

• Contributions match pension scheme rules
  
• Any missed or adjusted contributions during the tax year have been resolved
  
• Payroll records align with pension provider data
  

This step is especially important for payroll teams managing multiple employers or complex pension arrangements.

4. HMRC submissions are complete for the tax year

Before closing the tax year, confirm that:

• All RTI submissions for the tax year have been successfully sent
  
• There are no outstanding errors, warnings, or rejected submissions
  
• Your records are ready for final tax year reporting
  

Using reliable payroll software can make tax year end submissions significantly smoother and reduce the risk of last-minute issues.

5. Payroll reports are saved and stored securely

Before you officially close the tax year, download and save all key payroll reports, including:

• P60 data for the tax year
  
• Year-to-date payroll summaries
  
• Payroll journals covering the full tax year
  

These reports are essential references for audits, employee queries, and future payroll checks.

Why payroll software matters at tax year end

The right payroll software helps reduce manual checks at the end of the tax year, flags inconsistencies early, and gives you confidence that nothing has been missed. Cloud payroll software also ensures your tax year data is secure, accessible, and ready to roll forward into the new tax year.

Final thought

The final payroll of the tax year doesn’t need to be stressful. With the right tax year checks, and the right payroll software, you can close the tax year cleanly and start the next one on solid ground.