End of Year Payroll Procedure 2023/2024

This article will outline the 2023/2024 end of year procedure and provide you with a summary of the changes which are being introduced for the 2024/2025 tax year. 

Do you need to process a Week 53 this year?

Week 53 typically occurs if your payslip date (the date which your employees receive their payment) falls on the 5th April 2023. This happens because a year is made up of 365 days or 52 weeks and 1 day, when the extra day falls on your company payday, week 53 comes into effect. However, in the 2023/2024 tax year February has an extra day due to 2024 being a leap year. This extra day means that there are two days in week 53 this year.

• Thursday 4th April 2024, and Friday 5th April 2024

If all of your employees are paid monthly, simply proceed with your usual payroll process. The information in this message is not relevant.

How to process a Week 53

Simply set the correct payslip date and process it in the same way as any other pay period. Qtac Software will perform this action automatically when processing week 53. The software will ignore all previous tax and pay for the year and will perform a standalone calculation in that pay period.

For further information on the week 53 process click here and navigate to the “Week 53” Payments section.

Final FPS

Qtac will automatically include the ‘Final Submission Indicator’ within your final (W52/W53/M12) FPS submission.

Simply put, all you need to do at the end of the year is:

• Pay your final period (W52/W53/M12)
• Submit FPS (Full Payment Submission)

P60

Any employee who is employed by your business on the 6th of April must receive a P60. If an employee has left prior to the 6th April they will not receive a P60. 

A P60 can be produced from the Qtac software from “Reports > Year End > Electronic P60’s”. If you have the company name selected the software will run the P60’s for the whole company. For more information on P60's please click here.

Migration to the 2024/2025 software

Once your final pay period has been completed, and you’ve updated both years software, you can migrate the data from the 2023/2024 version into the 2024/2025 software.

On migration, you can automatically increase pay rates of employees paid the National Minimum Wage to make it even easier for clients to migrate.

For more information on how to migrate last year’s data read our migration guide.

Installing and Migrating the New Software

At the end of the tax year Qtac produces a new version of the payroll software. You are able to migrate the data from 2023/24 version of the software into the 2024/25 software once your final pay period has been completed. For more information on this process see Migrate last years data.

Changes Introduced in 2024/25

There are a number of statutory changes being implemented for the 2023/24 tax year

National Minimum and Living Wage Rates 2024:

The government has accepted the Low Pay Commission’s recommendations for National Living Wage (NLW) and National Minimum Wage (NMW) rates, effective from pay periods beginning on or after 1st April 2024. The NLW for those aged 21 and over will increase to £11.44, marking a 9.8% rise.

The rates which will apply from 1st April 2024 are as follows:

For more information on Minimum wage rates for 2024 visit GOV.UK.

National Insurance (NI) Changes:

NI Changes Breakdown:

• Class 1 employee NICs reduced to 8% from 6th April 2024.
• Lower Earnings Limit (LEL) frozen at 2023/2024 levels at £6,396 per annum, supporting low-income individuals.

A little bit about us...

Qtac, a recognised payroll solutions provider in the UK, has been serving businesses for 30 years. Specializing in both payroll software and outsourced payroll services, Qtac caters to small businesses, large corporations, and payroll bureaux. Our software, recognised by HMRC, streamlines the payroll process, featuring RTI submissions, workplace pensions management, and a cloud-based portal for payslips and employee self-service. This software is supported by top-tier customer assistance, ensuring a smooth payroll experience.

Additionally, Qtac offers tailored ‘white-labelled’ outsourcing services. These services are particularly attractive to accountancy firms, as they save time, reduce stress, and mitigate payroll-related risks. By outsourcing to Qtac, companies can be confident in the knowledge that their payroll needs are being expertly managed.

Qtac's solutions are not just about functionality; they are about building long-lasting relationships with clients, offering them a combination of technology and expertise. Their commitment to adapting to client needs and providing reliable, efficient services has established Qtac as a trusted name in the payroll solutions sector in the UK. In essence, Qtac simplifies and enhances the payroll process for a diverse range of clients, ensuring compliance, efficiency, and customer satisfaction. 

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