Introduction
Payroll Year end process:
Run procedures prior to year end
Run procedures at year end
Run procedures at start of new year
This content has been divided into three main areas:
Introduction and summary of important changes.
Checklists, which can be used to mark off when each year end step has been completed.
Guide, with screen shots breaking down each of the year end procedures in detail
Stationery Requirements
The P60 Form format as supported by Coins is the 2025 P60. This is a single sheet laser form and you will require a laser printer.
Coins ERP+ will print the approved P60 form fully formatted as HMRC no longer provide stationery.
For more information, see the guidance on the gov.uk website: PAYE draft forms: specifications for substitute forms P60.
Coins Software Fixes
UK legislative changes | v12.05 Fix Number | v12.05 Fix Date (MU) | v12.04 Fix Number | v12.04 Fix Date (MU) | v12.03 Fix Number | v12.03 Fix Date (SP) |
HUM01122 PAYE RTI affective SPBP (Norther Ireland) | 8519 | 18-Mar-26 | 8523 | 18-Mar-26 | 8533 | N/A |
HUM01126 PAYE RTI New Student Loan Plan Type April 2026 | 8519 | 18-Mar-26 | 8523 | 18-Mar-26 | 8533 | N/A |
HUM01127 PAYE RTI Removal of "State Aid" items from EPS | 8519 | 18-Mar-26 | 8523 | 18-Mar-26 | 8533 | N/A |
HUM01063 P60 Form Update Effective April 2026 | 8436 | 4-Mar-26 | 8435 | 4-Mar-26 | 8489 | Feb-26 |
CHCM-54 RTI Statutory Sick Pay (SSP) Changes | 8572 | 1-Apr-26 | 8573 | 1-Apr-26 | 8578 | NA |
Software Changes for 6th April 2026 Tax Year
In this section, we explain the changes in Coins ERP+ that are relevant to the new tax year.
There are a number of RTI submission changes for UK tax year 2026/27. Access Coins are making the necessary changes required for these changes. In summary:
UK Payroll Legislative Change - Statutory Paternity Leave Will Become A Day One Right From 6th April 2026
For SPP and the check for eligibility for leave we have removed the 26 week continuous employment condition for births/adoptions from 6th April 2026 onwards.
Employees can give notice of Paternity Leave/Unpaid Parental Leave from day one of employment
Fathers and partners can now take Paternity Leave and Pay after Shared Parental Leave and Pay (previously this was not allowed)
Continuity of service requirements for Paternity Pay remain unchanged
New Student Loan Plan Type [5] April 2026 – RTI Change
Under legislation The Education (Student Loans) (Repayment) (Amendment) (No 4) regulations 2022, the Department for Education (DfE) announced the introduction of a new student loan Plan type 5. From 2026/27, Plan 5 will be the new default plan type to use, where employees don't know their plan type, until the employer receives the start notice
Statutory Sick Pay [SSP] Reform UK legislative change for 1 APR 2026 -RTI Change
Removal of the LEL: The rate of Statutory Sick Pay following annual benefit and pension uprating will be £123.25 and will be available to all employees regardless of their weekly earnings. So, all employees will be entitled to SSP at either 80% of their earnings or the flat weekly rate, whichever is lower
Removal of waiting period for SSP: a period of incapacity for work (PIW) commences from their first full day of sickness, rather than the fourth, and waiting days are removed.
SPBP (Northern Ireland) RTI Change
Access to parental bereavement pay as a Day 1 right in the cases of stillbirth and child death, thereby removing the 26 week continuous employment criteria which will continue to apply in Britain
Inclusion of miscarriage (up to 24 weeks) as part of the bereavement provision (also available from the first day of employment)
The Miscarriage element of the bereavement payment and the Day 1 right for SPBP payments only applies to claimants gainfully employed in Northern Ireland and on whose behalf an employer makes Class 1 National Insurance Contributions.
Annual Details for Tax Year
Tax Bands
ULEV Percentages
Approved CO2 Percentages
No Approved CO2 Percentages
Rate and Threshold Changes from 6 April 2026
A summary of the tax changes can be found on the HMRC website:
General Uplift of Tax Codes
Please check with HMRC whether there will be a general uplift of tax codes with suffix 'L'.
Full instructions will be issued to employers on form P9X (2026) 'Tax codes to use from 6 April 2026'.
National Insurance Thresholds
The 2026-27 Class 1 National Insurance contributions limits are as follows:
Class 1 NI Threshold - 2026-2027 | Weekly | Monthly | Annual |
Lower Earning Limit (LEL) | £129 | £559 | £6,708 |
Primary Threshold (PT) | £242 | £1048 | £12570 |
Secondary Threshold (ST) | £96 | £417 | £5,000 |
Freeport Upper Secondary Threshold (FUST) | £481 | £2,083 | £25,000 |
Investment Zones Upper Secondary Threshold (IZUST) | £481 | £2,083 | £25,000 |
Upper Secondary Threshold (under 21) (UST) | £967 | £4,189 | £50,270 |
Apprentice Upper Secondary Threshold (Apprentice under 25) (AUST) | £967 | £4,189 | £50,270 |
Veterans Upper Secondary Threshold (VUST) | £967 | £4,189 | £50,270 |
Upper Earnings Limit (UEL) | £967 | £4,189 | £50,270 |
NI Contribution Rates
NI Contribution Rates - 2026-2027 | % |
Employer | 15% |
Employee | 8.00% |
NI Contribution Rates - 2026-2027 | % |
Reduced | 1.85% |
Additional Earnings | 2.00% |
Pension Auto Enrolment Thresholds 2026-2027
Pension Thresholds - 2026/27 | Annual |
Lower level of qualifying earnings | £6,240 |
Earnings trigger for automatic enrolment | £10,000 |
Upper level of qualifying earnings | £50,270 |
NOTE: The above tables may have changed since the time of publication. These will need to be confirmed correct at the time of change.
Apprenticeship Levy – 2026-2027
Employers and connected companies with a total annual pay bill of more than £3 million are liable to the Apprenticeship Levy, which is payable monthly. Employers who are not connected to another company or charity will have an annual allowance that reduces the amount of Apprenticeship Levy you have to pay. Apprenticeship Levy is charged at a percentage of your annual pay bill.
Apprenticeship Levy | 2026/27 rate |
Apprenticeship Levy Allowance | £15,000 |
Apprenticeship Levy Charge | 0.5% |
Student Loan and Postgraduate Loan Recovery
Thresholds | Annual |
Plan 1 Threshold | £26,900 |
Plan 2 Threshold | £29,385 |
Plan 4 Threshold | £33,795 |
Plan 5 Threshold | £25000 |
Student Loan Deductions Rate | 9% |
Postgraduate Loan Threshold | £21,000 |
Postgraduate loan deductions Rate | 6% |
NOTE: The above thresholds may have changed since the time of publication. These will need to be confirmed correct at the time of change.
Checklists for End of Year Procedures
Throughout this content, when reference is made to performing procedures within all payrolls, this refers to the weekly, fortnightly, four weekly and monthly payrolls.
The Payroll Year-End Routine must be run for each payroll frequency (for example, weekly and monthly), and for each company on the system.
NOTE: Screen shots have been inserted into this content for demonstration purposes only. Please check with HMRC and your tax office for correct figures to enter.
Checklists with the recommended sequence of events for payroll year end follow.
Checklist - Prior to Year End
This will highlight potential issues before 5th April, 2026.
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If the steps above are followed, you will be fully prepared for the Tax Year-end. This dummy run will enable you to report any issues at an early stage to Coins, enabling any appropriate action to be taken to resolve any discrepancies that are apparent.
Checklist - At Year End
Task | Done |
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Checklist - At Start of New Tax Year
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End of Year Procedures
This section explains the procedures to follow for the End of Year process.
We recommend that you follow these procedures in the order that they are listed; for example, ensure that all 'Prior to Year End' is completed before you move to the 'At Year End' procedures.
NOTE: The service packs detailed on the Coins website client area must be in place prior to completing the 2025-2026 payrolls and prior to processing any 2026-2027 payrolls or RTI processes.
Prior to Year End
Set Week 53 Indicator to Yes
This is only applicable to Weekly Payroll (including two-weekly and four-weekly) and is the only variance between monthly and weekly.
If it is necessary to run a payroll for week 53 pay period 2025-2026, you must ensure that the 'Week 53 year' tick box has been ticked. Do this before starting the pay process for week 52, or sooner if possible.
To set the week 53 indicator:
Go to
Payroll > Weekly Payroll > Setup >Periods Maintenance, and make sure that a valid week 53 period exists if required.
If you need to add a period, click Add ( + ) to insert an additional line and populate it with dates and other values as appropriate. Please ensure that the Week 53 dates are different from those set up for Week 52.
Go to Payroll > Company Setup > Company Configuration.
You should see that the Week 53 box has been ticked automatically.
If you do not have a week 53 but the box is ticked, then you should delete the week 53 period in Periods Maintenance.
RTI Submissions – FPS and EPS
On Payroll > Global Functions > HMRC Workbench > RTI tab, when you create your final submission for the year, whether this is an FPS or an EPS, you will need to tick the Final Submission for Year box via the main tab on the submission.
FPS
NOTE: The tick box is only available in the Submission in Global Functions >HMRC Workbench and not each individual pay frequency HMRC Workbench.
EPS
Complete the required fields on the Recoverable Amounts Year to Date tab if required.
Then submit the EPS.
You have now completed your End of Year submission.
The following sections regarding reconciliation are being kept in the documentation for reference. With the introduction of RTI, you should be reconciling on a monthly basis, so this may be irrelevant to you.
Print P35 Summary
Print the P35 summary for your records.
Go to Monthly Payroll > Reports > P35 Report. Because the P35 is submitted electronically, you do not need to include leavers.
Print Relevant General Ledger Entries
Print the relevant entries for income tax and NIC deductions and any other statutory values such as SSP/SMP from the General Ledger.
From the home page, select the General Ledger module.
Select the Report menu and select the Operational Report submenu.
Select the GL Transaction Report option from the menu. The GL Transaction Report screen is displayed.
On the Main tab, enter the dates for the Start and End periods.
On the Account Selection tab, select the accounts required, using the Lookup buttons to select from the list.
You can select multiple accounts: use the Shift or Control keys and click to select the rows, then click the Return Selected button.
You will return to the GL Transaction Report screen.
Click Next ( → ) to run the report.
Additional reports that you may wish to run include Transaction Type and Detailed Source Reports, which can be filtered as required to the relevant transactions.
Reconcile Income Tax and NI Contributions
Use the P35 column totals and the General Ledger reports from the previous two steps to reconcile the payroll reports to your financial ledgers.
It is recommended as best practice that you carry out this reconciliation task at the end of every month as part of your normal monthly routine. This will highlight at an early stage if there are any adjustments that you need to make, either in Payroll the General Ledger or both.
It is common that payroll personnel are not responsible for the resultant entries in the financial ledgers. However, it is good practice to keep a permanent file note of any unusual circumstances or adjustments that you encounter in payroll processing during the year. This may help the person whose job it is to carry out reconciliation tasks as well as being a reference point for any subsequent Inland Revenue enquiries.
Mid-year implementations of payroll require special care as this requires manual population of detailed year-to-date NI information as well as summary totals in the relevant year-to-date pay items.
These manual data population exercises should be checked carefully against a full P60 listing, P35 column totals and General Ledger reports at the time of conversion.
Further Reconciliation Report Options
If required, print additional reports to investigate and correct any anomalies. Below are a few suggested reports:
Employee NI Details
Reconcile contribution figures using this report.
Employee Selected Items
This reports on employee pay items (to a maximum of fourteen). You can display department or location totals for each item and the overall total.
Go to Weekly or Monthly Payroll > Reports > Selected Item Report.
At Year End
Reconciliation Checks
Where necessary, repeat the reconciliation checks covered in Reconcile Income Tax and NI Contributions and Further Reconciliation Report Options.
Print the P60s
Once reconciled to your satisfaction, print the P60s.
Print the P35
Print the complete P35 on plain paper as supporting documentation for your P35 Employer's Annual return.
The final page of the P35 gives a breakdown of the report totals for reconciliation, and is not intended for submission to HMRC.
Leavers appear at the end of the P35, and for current employees the directors are reported first.
Follow the instructions outlined in Print P35 Summary.
Check that Pay Items Are Set Correctly
NOTE: This procedure also deletes Pay Item history records when they exceed the number of years to be retained as indicated by the Years History field on each Pay Item. When all Pay Items for an employee have been deleted in this way, the employee record is also deleted. Before running this procedure, please make sure that the Pay Item History fields are set appropriately. To avoid employee deletion, set at least one common Pay Item to 7 years.
Prior to running the Year-End routine, to ensure you have a pay item with 7 history years assigned, go into pay item details via Payroll > Global Setup > Pay Items.
Years History should equal 7 to ensure employees with this item in their pay sequence are not deleted due to zero history on all items.
Please note that the "Year End Clear" tick box is a very important flag also in terms of year-end clearing. Statutory items such as Taxable, NI-able, and NI paid and Tax paid should have the box ticked as this is cumulative only for the tax year and should be reset to zero for the new tax year as of period 1.
Company items such as Holiday accrual (if run by calendar or year other than fiscal year) and staff loans reducing balance and calculated should have the box unticked as these balances should be brought forward to the new Tax Year. At this stage the Year End can be run.
End of Year Clearing Routine
In Coins ERP+, the clearing routine is run when you start a new pay period for period one of the new tax year.
Check that Payroll has Moved Successfully into the New Tax Year
Once 'Start new pay period' has finished, you should check that the year end routine has completed correctly and that the Payroll has moved successfully into the new tax year.
Check employee details by checking the YTD's in the Sequence Items Tab.
At Start of New Tax Year
NOTE: This information is a guide to the fields that require updating within Coins. It should be used in conjunction with the information issued by your tax office.
The tax tables are global to all Coins companies and all payrolls but are specific to a tax year. The tax tables are retained for current and prior years; this ensures that payrolls that are still in the prior year and requiring calculation can still be processed based on the relevant tax year's figures. This means you can run year end for monthly payroll and advance the new rates for 2026-2027, while weekly payroll (pre year-end) can still use 2025-2026 rates for final pay-period calculation purposes.
Amend the Tax Tables, National Insurance and SSP/SMP/SAP/SPP/SPBP Tables
The Tax and NI tables have been combined into one function in current versions of Coins.
Go to Payroll > Global Setup > Annual Details for Tax Year.
Ensure the new NI and Statutory Payment rates are correct.
Enter the new rates for Tax by clicking Open on the Tax Bands tab and completing the relevant fields.
Coins uses the date in the Payroll Configuration screen assigned to the pay frequency to derive the year applicable for tax rates, and thus refers to the appropriate year's Tax NI, SSP and SMP/SPP/SAP table at the point of payroll calculation.
Once the rates have been entered click Save to accept the details.
Update the Monthly Pay Periods
Update the monthly pay periods with the Periods Maintenance procedure using the following example as a guide.
NOTE: Weekly periods will be automatically created once the payroll year-end clearing routine has been run, thus you do not need to manually update as in Monthly.
Payroll > Monthly Payroll > Setup > Periods Maintenance. Any General Ledger periods not set up yet will not be available to the payroll.
Enter the dates for all 12 periods. You can add the G/L dates later when these are available.
Run the Tax Code Increases Procedure
There are no tax code changes for 2026-2027
HMRC have announced that there will be NO uplifts of tax codes for tax year 2026-27. The 'standard/emergency' tax code for 2026-27 remains at 1257L (S1257L in Scotland, C1257L in Wales). The HMRC help sheet (www.hmrc.gov.uk/helpsheets/p9x.pdf) gives further guidance on Tax Codes.
If HMRC subsequently update this requirement then run the Tax Code Increases procedure to increase the suffix by the appropriate amount.
The Tax Code Increases procedure is a company-wide procedure by pay frequency, so make sure all payrolls have run the end of year clearing procedure above before performing this step and selecting the required pay frequency to update.
Enter the tax increases as follows:
Go to Payroll > Company Setup > Employee administration >Tax Code Increases.
Update P9 (T)s
Using this option you can update the new tax codes from 6 April 2026 (you will not get a new tax code for every employee).
NOTE: Only update the P9 (T) details after the Tax Code Increases procedure has been completed.
Keep and use the form P9 (T) with the most recent date for each employee (if you have more than one use the most recent one). Scrap any form P9 (T), for the same employee, with an earlier date.
Update Vehicle Benefit Details for 2026 in Employee Allocated Assets
Where Benefit in Kind values have been 'User Set', you will need to update these manually for the new Tax Year before you run your first weekly/monthly payroll.
Go to Employee Maintenance.
Select each employee record.
On the Other tab menu, select Allocated Assets.
Select the Asset Code link.
Enter the Vehicle Benefit and Fuel Benefit for 2026.
Save the details.
You have now completed the Coins year end routine and may run your normal payroll activities in the first period.