Pre year-end checklist: Key employer obligations & reporting requirements

As the tax year-end approaches, employers must make sure they’ve met all payroll, tax, and compliance obligations. Overlooking key deadlines and reporting requirements can result in interest/penalties along with additional administrative burdens. To help you stay on track, we've compiled a checklist of essential year-end deadlines, along with a focus on commonly missed Benefits in Kind (BIKs) and how to report them.

Essential year-end responsibilities

Annual payroll for directors: If you have director(s) who operate an annual payroll, make sure your 2024/25 payroll run is submitted by 5 April 2025 deadline.

Final full payment submission (FPS): Must be submitted by 5 April to ensure compliance with year-end payroll reporting.

Final tax and national insurance payments: Make sure all tax and NIC payments are made to HMRC by the required deadline of 22 April 2025 to avoid interest/penalties.

P60 forms: These must be provided to employees by 31 May 25.

P11D forms: Must be submitted by 6 July 25 and a copy must be provided to each employee.

P11D(b) form: This must also be submitted by 6 July 25 to report the total Class 1A National Insurance contributions due.

PAYE settlement agreements: Must be agreed with HMRC for the 24/25 tax year by 6 July 25.

P11D tax and national insurance payments: Make sure all tax and NIC liabilities are paid to HMRC by the required deadline of 22 July 2025 to avoid interest/penalties.

Looking to Payroll benefits in kind from April 2025: Register by 5 April 2025

Common Benefits in Kind
Employers often overlook certain taxable benefits provided to employees. The following are common benefits which should be accurately reported:

1. Company cars and fuel
All company-provided vehicles and fuel benefits must be reported, including pool cars that may not meet exemption criteria.

2. Private medical insurance
Any employer-funded private health insurance.

3. Low or interest-free loans
If an employee has received an interest free or low interest loan from the company exceeding £10,000, at any point in the tax year, it needs to be reported.

4. Gym memberships & wellbeing benefits
Employer-paid gym memberships or other wellness schemes that don’t meet exemption criteria are taxable benefits.

5. Living accommodation
If you provide an employee with living accommodation, make sure you report the appropriate taxable value unless exemptions apply.

6. Mobile phones and IT equipment
Only one mobile phone per employee is exempt. Any additional phones or IT equipment, not used solely for work purposes, may be a taxable benefit.

7. Vouchers and non-cash gifts
Any non-cash gifts or vouchers provided to employees, including those given during festive periods, may be taxable unless covered under the trivial benefits exemption.

8. Medical cash plans
Employer-funded medical cash plans, which reimburse employees for healthcare expenses, must be reported as a taxable benefit.

Reporting of Benefits in Kind (BIKs)
Reporting Benefits in Kind (BIKs) involves a few different approaches depending on how the benefits are handled and taxed. One way to report benefits is through the P11D form. Each year, employers must submit P11Ds for every employee who receives taxable benefits. This form includes details of the benefits provided, and it’s important to remember that in most cases Class 1A National Insurance contributions are also due on the value of these benefits.

Alternatively, Benefits in Kind can be reported through payrolling. This method requires the employer to report and tax Benefits in Kind each time the employee is paid. Before the start of the tax year (6 April), employers must register with HMRC to payroll Benefits in Kind. Once registered, benefits should be processed in real-time through the PAYE system. Please note: if you are not already registered before the start of the tax year then you cannot report in this way.

In some cases, employers may choose to use a PAYE Settlement Agreement (PSA) to handle certain benefits on behalf of employees. A PSA allows employers to pay the tax for specific benefits, such as small or non-cash items like trivial benefits on their employees behalf. Under this agreement, the benefits are not reported on the P11D form. This approach is typically used when the employee would be unlikely to pay the tax on those benefits themselves, or when the benefits are too minor to justify reporting individually. Employers have until 6 July 2025 to agree a PSA with HMRC for the 24/25 tax year.
Each method has specific reporting deadlines and tax implications, so it’s essential to use the right one based on your business needs. If you're unsure about which method to use, please get in touch and we can help ensure you're compliant.

Stay compliant and informed
Missing or incorrectly reporting payroll and benefits obligations can lead to penalties and increased scrutiny from HMRC. Make sure your records are up to date and that your team is aware of all requirements.

For further details on employer responsibilities and HMRC guidelines, read our latest Employer Bulletin. 

Need Help?
If you need support with payroll processing, compliance or reporting of benefits in kind, our team is here to help. Please get in touch with our team on 0330 024 0888 or email enquiry@larking-gowen.co.uk.

Dannielle Chapman