This document outlines the steps users should follow, in addition to their internal processes and checks, to finalise payroll for the current tax year and transition the application to the new tax year.
This document is to compliment your internal processes and checks.
Before Closing Final Period
Users must ensure, calendars for next Tax Year must exist in PurePro before closing the final period of current Tax Year. An error message will appear in the control centre if this is not the case. For further information, please refer to our Incrementing Calendar guide.
Any remaining HMRC PAYE Forms for current period should be applied prior closing the final period.
For Tax Years with 53 weeks; Please note that cumulative tax codes are treated as week 1 for week 53 payroll in line with HMRC guidelines.
Final Period Close
Several automated tasks take place in the final period close.
The Tax Code Uplift
This is a general update of suffix tax codes for current workers, typically occurring at the start of a new tax year (e.g., L suffix codes increase by 7 points). This adjustment provides additional tax-free pay and modifies the default tax code for new PAYE starters. The uplift applies to IR35 contractors with a suffix tax code.
The system automatically applies the uplift values and sets the default tax code based on the Statutory PAYE Parameters for the relevant tax year. Once completed, a notification is displayed, and a ‘year-end’ entry is recorded in the Tax Code History to capture any changes.
Worker Tax Code History records all updates to worker payroll information. For further information, please refer to our Payroll Forms guide.
The default tax code remains 1257L, in accordance with the latest HMRC guidelines.
Clear Week 1 Indicators
Week 1 tax codes for current workers, including non-suffix codes (e.g., K Codes, BR, 0T, D0, D1, D2), are automatically reset to cumulative at the start of the new tax year. This also applies to Scottish codes (prefixed with an S) and Welsh codes (prefixed with a C), as well as IR35 contractors on a Week 1 tax code.
A ‘yearend’ entry is added to the Tax Code History in the worker record to capture these code changes.
Clear year to date values
At the start of the new tax year, the (YTD )Year-To-Date values (e.g., Taxable Pay, Paye Tax, etc.) are automatically reset to zero. This includes the removal of any previous employment values from the prior tax year. Users can view the YTD figures for workers under Worker History.
In Payroll Week One of the New Tax Year
Statutory Parameters
After a statutory upgrade, the first task for a Payroll Manager is to ensure the new year parameters are accurate. This includes verifying PAYE bands (including Scottish and Welsh rates), National Insurance, National Minimum Wage, Student and Postgraduate Loans, Statutory Payments, Pension contributions, Apprenticeship Levy, CIS Deductions, and Employment Allowance.
To view Statutory Parameters for Current Tax Year, please navigate to Admin → Statutory Rates
P9s
Match and Apply the P9 tax code notifications for the current tax year as soon as possible after rollover to the payroll week 1.
For further information please refer to our 🗞️Payroll Forms guide.
Statutory Payments
Statutory payment transactions that span the tax year are automatically recalculated to reflect the new rates.
Payroll Week One
Apportionment of late timesheets and payment transactions related to the previous tax year are treated as tax week 1. Allowances from the previous tax year cannot be applied.
Generating P60’s
Users should generate P60 task for workers who were paid in previous tax year and are carried forward to new tax year.
The "Generate P60" task is available in the Control Centre during the first period of the new year.
For further information please refer to our Worker Documents guide.
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