Post year-end payroll mistakes to avoid
22.05.2026The start of a new tax year is always a busy time for businesses. With the 2026/27 tax year now underway, many employers are already settling into new payroll routines, updating records and making sure everything submitted at year-end was accurate and complete. But even after the year-end deadline has passed, payroll mistakes can still create problems. From incorrect employee data to missed HMRC submissions, small errors can lead to unnecessary stress, delays and potential penalties.
Forgetting to update employee records
The new tax year is the perfect time to review employee details, but it’s something many businesses overlook once April has passed.
Incorrect addresses, outdated tax codes or changes to student loan deductions can all affect payroll accuracy. If employee information isn’t updated promptly, it can result in incorrect payments or HMRC reporting issues later in the year.
It’s worth carrying out regular checks to make sure records remain accurate, especially if your workforce changes frequently or includes seasonal staff.
Missing HMRC notices and updates
Payroll legislation changes regularly, and businesses need to keep up with HMRC notifications throughout the year, not just at year-end.
Missing tax code notices, student loan updates or changes to statutory pay rates can quickly lead to payroll errors. Businesses relying on manual processes are particularly vulnerable, as notices can easily be missed or filed incorrectly.
Using payroll software that automatically retrieves HMRC notices helps reduce the risk of errors and keeps payroll aligned with current legislation.
Incorrect statutory pay calculations
Statutory Sick Pay, Maternity Pay, Paternity Pay, Shared Parental Pay and Neo-natal Pay all come with specific rules and calculations. Mistakes often happen when businesses try to calculate these manually or rely on outdated guidance.
Even after year-end, employers should ensure their payroll processes are correctly handling statutory payments for the current tax year, particularly if there have been changes to employee circumstances.
Accurate calculations not only help maintain compliance but also avoid underpayments or overpayments that can be time-consuming to correct later.
Leaving payroll until the last minute
One of the biggest payroll challenges for small businesses is time. Payroll is often squeezed between other priorities, increasing the likelihood of rushed submissions and avoidable mistakes.
Late RTI submissions, forgotten employee hours, or missed pension contributions can all happen when payroll becomes reactive instead of planned.
Creating a consistent payroll process each pay period helps reduce pressure and gives more time to spot issues before submissions are sent to HMRC.
Poor payroll record keeping
HMRC requires payroll records to be retained for several years, yet many businesses still rely on spreadsheets, manual filing systems or locally stored backups. This can become a major issue if information is needed for audits, employee queries or corrections to previous tax years.
Cloud-based payroll systems make it much easier to securely access historical payslips, reports, and submission records whenever needed, without worrying about backups or lost files.
Overcomplicating payroll processes
For many small businesses, payroll becomes more complicated than it needs to be. Multiple spreadsheets, disconnected systems and manual calculations all increase the risk of mistakes.
As businesses grow, payroll requirements also become more demanding. Managing pensions, CIS subcontractors, expenses, statutory returns and employee records manually can quickly become difficult to maintain.
Using a payroll system designed specifically for small businesses can help simplify processes, reduce admin time and improve accuracy across the board.
Making payroll easier with MyPAYE
If you’re looking to reduce payroll admin and avoid common payroll mistakes throughout the tax year, MyPAYE offers a straightforward cloud-based payroll solution designed for small businesses.
MyPAYE helps businesses manage HMRC RTI submissions, statutory pay calculations, pension auto enrolment, payslip production, CIS requirements and employee payroll records all in one place. Because the software is cloud-based, there’s no need for installs or manual backups, making payroll management more flexible and easier to access wherever you’re working.
The system is designed to help businesses stay compliant with changing payroll legislation while reducing the amount of manual admin involved in day-to-day payroll tasks. Features such as automatic HMRC notice retrieval, integrated timesheets and expenses and multi-payroll management can also help minimise errors and save valuable time each pay period.
If you’d like to know more or try the software for free, contact us here.
Sign up for a free trial today and see how our cloud accounting software can benefit your business.
You might also like
Changes and updates to Tax and National Insurance Rates coming into effect on 6th January 2024.
Within the statement released by the Chancellor of the Exchequer, was a rundown of changes being implemented in how National Insurance is paid, which means there are some key points to note which can help avoid costly payroll mistakes after the new year.
Cloud accounting vs desktop software: what businesses really gain
For many businesses, desktop accounting software has been the backbone of their finances for years. It’s familiar, it works and changing it can feel like an unnecessary risk. But as businesses become more flexible and teams work in different ways, the limits of desktop systems are becoming harder to ignore. That’s why more organisations are now considering cloud accounting, not as a trend, but as a practical step forward.
Finance software’s that work for charities
Running a charity comes with enough challenges without financial admin slowing things down. From managing donations and grants to paying staff and volunteers correctly, finance teams need charity finance software that is reliable, easy to use and compliant with regulations.
Free Yourself from Fees: Why Small Businesses Should Take Control of Payroll with MyPAYE
As a small business owner, you wear many hats. Marketing, sales, operations, the buck stops with you. But payroll?
How payroll slows firms down and how to fix it
Payroll is one of those business processes that simply has to work. Employees expect to be paid correctly and on time, and employers need to stay compliant with HMRC regulations. But for many small and growing businesses, payroll is still a regular source of stress, delays and unnecessary admin.
How to make FCA RegData reporting quick and simple
For many IFAs, FCA RegData reporting is one of those jobs that always feels bigger than it should. It’s detailed, time-consuming and often left until the last minute simply because fitting it around client work is difficult. The good news? RegData reporting doesn’t have to take days of preparation or involve juggling spreadsheets, bookkeeping systems and forms. With the right approach and tools, it can be quick, straightforward and far less stressful.
Payroll accuracy challenges for small businesses and how payroll software helps
Running a small business is never straightforward. There are sales to chase, customers to please and countless administrative tasks to manage. Payroll is one of the trickiest areas and it’s one that can quickly spiral into errors if you’re not careful. Even a simple mistake can lead to compliance issues, unhappy employees or fines from HMRC. So why do so many small businesses struggle with payroll accuracy and what can you do to fix it?
Payroll year end: What you need to do now
With the payroll year ending on 5 April, now’s the time to make sure everything is wrapped up properly and you’re ready to hit the ground running in the new tax year.
Scaling your business? Payroll and compliance will break first
Growth is the goal. More customers, more hires, more momentum. But there’s one part of the business that rarely gets any attention until it starts causing problems and that’s payroll. Early on, it feels simple enough. A spreadsheet, a few employees, a monthly routine that doesn’t take long to run. It’s manageable, so it gets pushed down the priority list. The focus stays on sales, delivery and everything driving the business forward.
Switching Payroll Providers Mid-Year? No Sweat!
Let’s be real - payroll is all about keeping things smooth and efficient. And if you’ve ever thought about switching payroll providers, you’ve probably heard the same old advice: "Wait until the new tax year in April!" But here’s the thing—that advice might be more myth than must-do. Sure, April gives you a "clean slate" with fresh year-to-date figures, but is it really the best time to make the switch? Let’s break it down.
The hidden cost of doing payroll manually
For a lot of small businesses, payroll starts off simple. A spreadsheet here, a few calculations there, maybe a bit of back-and-forth with HMRC. It feels manageable… until it isn’t. That’s when the manual payroll risks start to build up in the background. What often gets missed isn’t just the time it takes, it’s the hidden cost that builds up in the background.
Update to Scottish Income Tax Rates for 2024-25
The key income tax changes taking force from 6 April 2024 in Scotland were announced by the SNP’s Finance Secretary, Shona Robison, as she released a new plan for Scottish income tax rates which will impact payroll operations. The Scottish Government also announced a newly introduced 45 per cent income tax band for people earning between £75,000 and £125,140 per year.
What happens when payroll and compliance don’t talk to each other
Payroll and compliance are two sides of the same coin. One pays people correctly, the other proves to the regulator that everything has been done by the book. When they work together, the business runs quietly in the background. When they don’t, things start to fall apart in ways that aren’t always obvious until it’s too late.
What is a P11D Form – and why is it so important to payroll compliance?
Why RegData reporting isn’t the problem
Speak to most IFAs about RegData reporting and the reaction is fairly similar. It’s seen as time-consuming, complicated and something that takes up far more headspace than it should.
Why RMAR reporting takes hours
For many IFAs and regulated firms, RMAR reporting is one of those tasks that quietly eats up hours every reporting period.