How to Get Your Payroll Ready for Year-End: A Guide for UK Productions
With the UK tax year ending on April 5, now is the time to start thinking about your final production payrollÌýand doingÌýthose housekeeping jobs,Ìýso you canÌýstartÌýthe new tax year on the right foot withÌýup-to-date records.
To help,Ìýwe’ve put together a checklist of key steps production teams can take toÌýmake their last payroll of the tax year as painless as possible.
Confirm any leavers
Before the end of the tax year,Ìýit’s important to let your payroll provider know of anyÌýcrew membersÌýwho have left your productionÌýduring the year.ÌýBy doing this, yourÌýpayroll provider will be able to provideÌýaccurate data to both HMRC and your pension provider, so your records will be up to date for theÌýnew tax year.
This is particularly important for your PAYE crew because if HMRC does not receive theirÌýleave datesÌýin a timely manner, this can directlyÌýimpact their tax,Ìýwhich in some cases canÌýresult in HMRC incorrectly thinking thatÌýthey haveÌýtwo jobsÌýand taxing them accordingly.
All you need to do isÌýsendÌýyour payroll providerÌýa list of those people who have left the production and the date theyÌýleft, and they will do the rest.Ìý
If you work with Â鶹ֱ²¥, on request, we can provide a list of active crew members along with the last date they were paid to make it even easier for you.Ìý
Note that all data provided in the final week will be used to complete P45s and P60s, so making sure leave dates, address updates and any other changes are inÌýisÌýcrucial.Ìý
Your final payroll – check and double check!
It’sÌýimportantÌýthat you sendÌýyourÌýlast payroll inÌýas soon as you can;ÌýtheÌýquicker you send it in, the quickerÌýyour payroll provider can send off your final submission to HMRC. Your payroll providerÌýwill then complete the necessary steps to ensure your payroll is ready for the new tax year.
It’sÌýcriticalÌýat this time of year to double check you haveÌýthe correct tax status for any new starters in the final week, especially for PAYE!ÌýIt’s more complicated to correct someone who was paid as Appendix 1Ìýand should have been PAYE or vice versa, due to theÌýshort timeframes at this time of year.
If you have any questions or concerns about getting your payroll in for the final week, let your payroll provider know in advance and they willÌýsupport you with whatever you need.
Things toÌýremember:
- Submit leave dates as soon as possible
- Submit your payroll as soon as you can (or let your payroll provider know when to expect it)Ìý
- P60sÌýgo toÌýall employees who are still employed on April 5 (delivered by May 31, 2026)
- P45s go to any leavers
Things to consider for the newÌýtaxÌýyear
It’sÌýgoing to beÌýa busy year ahead forÌýemployers and payroll providers with the newÌýemployee rights that areÌýcoming. Some of those changes take effect from April 2026, whereas others will take effect later in the year or in 2027.ÌýÌý
Factor rate changes into your budgets
The start of each tax year is generally when any new tax rates take effect.
The following statutory rates willÌýincrease from April 6:
- Statutory Sick Pay will increase fromÌý£118.75 a week to £123.25 a week (or 80% of the employee’s earnings, whichever is lower).
- Statutory Maternity Pay (SMP), Statutory Maternity Allowance, Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Statutory Shared Parental Pay (ShPP) and Statutory Parental Bereavement Pay (SPBP) will increase fromÌý£187.18 a week to £194.32 a week (or 90% of the employee’s earnings, whichever is lower).Ìý
Apply for the Employment Allowance
In 2025 the government increased the employment allowance from £5,000 to £10,500 to offer some reprieve for smaller businesses. This means that eligible employers only start paying employer NICs when each employee’s earnings have passed the £10,500 threshold.
It’s important to note thatÌýemployers must apply for this allowance for each tax yearÌý(itÌýisn’t applied automatically).ÌýOnce your claim has beenÌýsubmitted, you canÌýimmediately start using your allowance.
Speak to your payroll provider about how to apply for the allowance and get an idea of the timing so that you can factor this into your cash flow.
Â鶹ֱ²¥ will provide you with an application form if you would like us to apply for this on your behalf.Ìý
Confirm any tax code changes
At the start of the new tax year, HMRC will issue P9 tax notices informing employers about any changes to their employees’ tax codes. Most productions will opt to have these notices sent directly to their payroll provider. If not, you'll receiveÌýthese in the post and will need to pass them on to your payroll provider so that they can make sure each employee’s tax code is up to date.
Preparing forÌýchanges to employee rights
Workplace rights are changing from February 2026. These reforms have been developed in partnership with businesses and are designed to support a productive, fair economy that works for employers and employees alike.
Changes are being introduced gradually, giving you time to prepare. .
Other legislative updates
In line with recent budget announcements,Ìýwe’ve outlined the new rates, effective from April 2026, to help employers prepare for compliance and budgeting.
National Minimum Wage
National Minimum Wage (NMW) rates will be adjusted for the upcoming fiscal year. These changes reflect the government’s commitment to supporting lower-wage workers and addressing cost-of-living pressures.
Statutory payments
Student loans and postgraduate loans
Below are the rates for the upcoming tax year. Note thatÌýwe're yet to receive confirmation on Plan 4, although it is expected to rise to £33,795. These rates are also subject to change before April 2026.
PAYE 2026-2027
- PAYE personal allowance: £12,570
- PAYE thresholds:
- Weekly: £242
- Monthly: £1,048
- Standard tax code: 1257L
- Emergency tax codes:
- 1257 W1Ìý
- 1257 M1Ìý
- 1257 XÌý
- Tax code uplifts:
- L:  N/A* Ìý
- M:  N/A* Ìý
- N: N/A *Ìý
- Income tax rates – England and Northern Ireland
- Basic rate (20%): £1 – £37,700Ìý
- Higher rate (40%): £37,701 – £125,140Ìý
- Additional rate (45%): £125,141 ≥Ìý
- Income tax rates – Scotland
- Starter rate (19%): £1 – £2,827Ìý
- Basic rate (20%): £2,828 – £14,921Ìý
- Intermediate rate (21%): £14,922 – £31,092Ìý
- Higher rate (42%): £31,093 – £62,430Ìý
- Advanced rate (45%): £62,431 – £125,140Ìý
- Top rate (48%): Above £125,141 >Ìý
- Income tax rates – Wales
- Basic rate (20%): £1 – £37,700Ìý
- Higher rate (40%): £37,701 – £125,140Ìý
- Additional rate (45%): £125,141 ≥Ìý
Simplify payroll compliance with Â鶹ֱ²¥
Staying on top of your compliance requirements can be daunting, but an experienced payroll provider will help you to mitigate your risk and give you peace of mind.Ìý
At Â鶹ֱ²¥, our UK-based team has deepÌýexpertise in local payroll law and can help your production to navigate the legislative requirements and compliance challenges with confidence. Get in touch to find out more.Ìý
This articleÌýcontains general information on a subject that may be of interest to you. Nothing in this article should be considered payroll,Ìýtax or legal advice. You should consult with your own advisorsÌýregarding the applicability of this information to your specific circumstances.Ìý
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