Burlingham Financial ServicesA month-end close checklist for small businesses
Ten steps to close your books properly every month, in the right order.
Payroll is one of the few areas of business admin with a deadline every single pay day. Here's a practical checklist for 2026/27, with the figures that changed this April.
Key figures for 2026/27
| Item | 2026/27 |
|---|---|
| National Living Wage (21 and over), from 1 April 2026 | £12.71 an hour |
| 18 to 20 year olds | £10.85 an hour |
| Under 18s, and apprentices under 19 or in their first year | £8.00 an hour |
| Employer National Insurance | 15% above £5,000 a year (secondary threshold) |
| Employment Allowance | Up to £10,500, for eligible employers |
| Statutory Sick Pay | £123.25 a week, or 80% of average weekly earnings if lower |
| Statutory Maternity, Paternity and Adoption Pay (standard rate) | £194.32 a week, or 90% of average weekly earnings if lower |
| Auto-enrolment earnings trigger | £10,000 a year |
| Qualifying earnings band | £6,240 to £50,270 a year |
Before the pay run
- New starters: complete right to work checks before they start, collect a P45 or starter checklist and add them to payroll before their first pay day.
- Changes: record pay rises, hours, overtime, bonuses, absence and any salary sacrifice.
- Minimum wage check: make sure every worker's average hourly pay meets the rate for their age. Unpaid time such as compulsory training counts as working time.
- Tax codes: apply any new codes HMRC has issued.
- Sickness: since 6 April 2026, Statutory Sick Pay is payable from the first day of sickness and the lower earnings limit has been removed, so all employees now qualify.
On or before pay day
- Send the Full Payment Submission (FPS) to HMRC under Real Time Information (RTI) on or before the day you pay employees.
- Give every employee a payslip on or before pay day.
- Pay employees the net amounts shown on the payroll.
After the pay run
- Send an Employer Payment Summary (EPS) by the 19th of the following tax month if you're reclaiming statutory pay, claiming Employment Allowance or paid no one that month.
- Pay HMRC the PAYE, National Insurance and student loan deductions by the 22nd of the following tax month if paying electronically, or the 19th by post. Employers who usually owe less than £1,500 a month may be able to pay quarterly.
- Pay pension contributions to your provider on time and keep your declaration of compliance with The Pensions Regulator up to date.
- Post the payroll journal to your bookkeeping so your PAYE and pension control accounts stay accurate.
Year-end dates for 2026/27
- Final FPS marked as the last of the tax year, on or before your last pay day before 5 April 2027
- P60s to everyone employed on 5 April 2027, by 31 May 2027
- P11D and P11D(b) for expenses and benefits, by 6 July 2027
- Class 1A National Insurance on benefits, paid by 22 July 2027 electronically, or 19 July by cheque
Coming soon: payrolling benefits. From 6 April 2027, employers must report and tax company cars, vans, fuel and medical benefits through payroll rather than on P11Ds, with most other benefits following from 6 April 2028. If you provide benefits, now is the time to prepare.
Keep the records
Payroll records, including pay, deductions, reports and payments to HMRC, absence and tax code notices, must be kept for three years from the end of the tax year they relate to. HMRC can charge a penalty of up to £3,000 for incomplete records.
How I can help
I run weekly, fortnightly and monthly payrolls end to end, including RTI submissions, payslips, pension auto-enrolment, starters and leavers, and year-end.
Sources
- Rates and thresholds for employers 2026 to 2027 (GOV.UK)
- National Living Wage increases to £12.71 per hour (GOV.UK)
- Automatic enrolment earnings trigger and qualifying earnings band 2026/27 (GOV.UK)
- Statutory Sick Pay: information for employers (LITRG)
- Running payroll (GOV.UK)
- PAYE and payroll for employers: keeping records (GOV.UK)
- Employer guide to P45, P60 and P11D deadlines (IRIS)
- HMRC guidance on the phased introduction of payrolling benefits in kind (ICAS)
This article is general information, correct at the date it was last reviewed. It isn't tax or legal advice, so please speak to your accountant about your own circumstances.