Payroll Year-End 2025/26: Deadlines and SSP Changes

Key payroll year-end deadlines and what the new SSP changes mean for UK employers.

Key Payroll Deadlines for 2025/26

Payroll Deadlines and SSP Changes

As we approach the end of the 2025/26 tax year, now is the time for employers to make sure their payroll is accurate, compliant and ready for the new tax year. With key deadlines looming and updates to Statutory Sick Pay (SSP) on the horizon, this is more than just a routine exercise.

Payroll Year-End Checklist for Businesses

What should you do now? Preparation is key. Ahead of the new tax year, businesses should:

  • Make sure your payroll software is updated and compliant
  • Review your sickness absence policies
  • Train your team who are responsible for payroll and HR
  • Factor increased SSP costs into your budgets

This is also a good opportunity to review your wider payroll strategy, making sure it aligns with your overall tax planning and business goals.

Key Payroll Deadlines for 2025/26

Your final payroll submission of the tax year must be made on or before your last payday falling on or before 5 April 2026. This includes submitting your final Full Payment Submission (FPS) and, where relevant, an Employer Payment Summary (EPS).

After year-end:

  • P60s must be issued to employees by 31 May 2026
  • Benefits reporting (P11Ds) follows shortly after, by 6 July

Common Payroll Year-End Risks

Missing or incorrect submissions at this stage can lead to HMRC queries and potential penalties, so it’s worth taking the time to review your figures carefully, particularly PAYE, NIC and director calculations.

Changes to Statutory Sick Pay (SSP)

Alongside year-end compliance, employers should be aware of the significant upcoming changes to Statutory Sick Pay (SSP), taking effect from 6 April 2026 under the Employment Rights Act 2025:

  • Day-one entitlement: SSP will be payable from the first day of sickness absence, replacing the current system where the first three “waiting days” are unpaid.
  • Removal of the Lower Earnings Limit: Employees will no longer need to meet a minimum earnings threshold to qualify, significantly widening eligibility.
  • Revised payment structure: SSP will be calculated as the lower of 80% of average weekly earnings or the statutory flat rate (set to increase to £123.25 per week from April 2026).

How the SSP Changes Affect Employers

For growing businesses, this has real implications:

  • Increased costs: More employees qualifying, and payments starting earlier
  • Greater admin: More frequent SSP calculations and payroll adjustments
  • Cash flow impact: Short-term absences becoming more costly overall

Need help with payroll?

If you’d like support reviewing your payroll or understanding how these changes may affect your business, or want us to manage your payroll, we’re here to help.

Call our payroll team 01603 812131 or email enquire@swintonaccountants.co.uk