Before processing period 1

Do not start to process year end until after our next release on 5th March 2025. Processing year end before this could cause major errors.

Before processing period 1 of the new tax year, you need to:

1. Make sure you are in period 1 of the 2025/2026 tax year.

2. Set up a 2025/2026 payroll calendar.

3. Produce P60s.

4. Set the Apprenticeship Levy allowance for each payroll company and frequency, in Legislation > Apprenticeship Levy Legislation.

   Learn more in About the apprenticeship levy.

5. Update, save, and calculate statutory payments in Payroll > employee record > Input, to make sure the most up to date rates are used in payment schedules.

6. In line with legislation changes, the Employment Allowance configuration is cleared down during Year-End and needs to be reconfigured during period 1.

   For tax year 2025/26, HMRC have announced a removal to the restriction that previously applied to Employment Allowance where employers who had incurred a secondary Class 1 NIC liability of more than £100,000 in the previous tax year were unable to claim.

   For tax year 2025/26, HMRC are advising employers claiming Employment Allowance to select ‘De minimums State aid does not apply’

7. Update Maintenance > Legislation > Employment Allowance Legislation.