Payroll Year End 2023 Checklist – Get Ready

In this article we provide a Payroll Year End 2023 checklist. We appreciate that finishing one tax year and starting the next can feel like you’re entering a bit of a race. So, we hope this article will help you get ready and heading for the winning line more easily.

Finishing one tax year and starting the next.

Payroll Year End 2023 Checklist – Get Ready, Set, Go!

As an employer running a payroll, you will need to report to HMRC on the previous tax year which ends on 5 April 2023. Additionally, you give your employees a P60, then prepare for the new tax year which starts on 6 April 2023.

When you send your final FPS (Full payment Submission) on or before your employees’ final payday of the tax year then you should put ‘Yes’ in the ‘Final submission for year’ field*, if available in your payroll software.

If this field* is not available then you should send an EPS (Employer Payment Summary) instead.
The final submission for the year should be sent no later than 19 April 2023
All employees should be issued with their P60’s no later than 31 May 2023.

There is no change to the standard tax code for the new tax year, which will remain as:

1257L until 5 April 2026.
This gives a tax free pay of £12570 per year, £1048 per month and £242 per week.

The new National Minimum Wage rates for the 23-24 tax year

are as follows:-

Aged 23 and over £10.42
Ages 21-22 £10.18
Aged 18-20 £7.49
Ages under 18 or in first year of apprenticeship £5.28

National Insurance

Lower Earnings Limit

This remains at £123 on 6 April 2023.

If you earn over £123 per week then you will accrue National insurance credits whether you pay national insurance or not.
This will entitle you to SSP (Statutory Sick Pay) and SMP/SPP (Statutory Maternity/Paternity Pay).

Primary Threshold

The threshold where the employee starts to pay national insurance contributions is not changing:

The Primary Threshold is aligned with the personal allowance, of £12,570 per year, £1,048 per month and £242 per week.

Secondary Threshold

The threshold where the employer starts to pay national insurance contributions is not changing:

£175 per week / £758 per month.

SSP and SMP/SPP Rates

A full week’s sick pay is going up:

from £99.35
to £109.40

and Parental pay is going up:

from £156.66
to £172.48 (or 90% of the employee’s average weekly earnings, whichever is the lower).

Payroll Year End 2023 and Ongoing Payroll Support

If you are a payroll client of Shaw Austin then we will take care of all of this for you.

For more information on our services give us a call on 01244 400244.

Shaw Austin are a firm of Chartered Accountants based in Chester supporting independent business throughout the UK. We take the headache out of business accounting and taxation by providing our clients with a personal service.

This article includes tax rates and allowances correct on date of publishing – tax rates and allowances can change from year to year. This is a general article to assist readers. Professional advice should always be taken in respect of your personal circumstances.

Updated March 2023