2026/27 payroll checklist: key deadlines, tax codes and HMRC updates

As we move into the 2026/27 tax year, payroll teams have an important opportunity to set the tone for the months ahead. A strong start is not just about meeting deadlines. It is about protecting accuracy, maintaining confidence and making sure employees are paid correctly from the outset. When the core checks are done properly now, the year is far easier to manage later.

At IAB, we know the start of the tax year is always a busy period for employers and payroll professionals. It asks a great deal of the people responsible for getting every figure right and every deadline met. But it is also a valuable chance to reset, review and move forward with confidence. By focusing on the essentials now, you can help make the rest of the year more manageable, more compliant and less stressful.

Apply National Minimum Wage changes at the right time

One of the first payroll checks for the new tax year is making sure the latest National Minimum Wage rates from April 2026 are applied correctly. Timing matters. As the CIPP explains, the new rates should be applied from the first full pay reference period that begins on or after 1 April 2026.

This is especially important where payroll periods overlap March and April, or where wages are processed in advance. A simple assumption can create avoidable underpayments, corrections and additional administration. Reviewing pay reference periods now can help keep everything accurate from the start.

Check employee tax codes using HMRC P9X guidance

HMRC has issued its P9X tax code guidance for 2026/27, and this is the point to check that all employee tax codes are correct. Payroll teams should review coding notices, carry forward existing codes where appropriate and apply any new instructions before the first pay runs of the year are finalised.

Small tax code errors can quickly turn into larger payroll issues. They can affect net pay, trigger employee queries and lead to corrections that could have been avoided with an early review. A careful check now supports a smoother payroll process for everyone involved.

Update payroll systems with the latest HMRC rates and thresholds

Payroll software and internal settings should be reviewed to ensure that the latest HMRC rates and thresholds for employers 2026 to 2027 have been updated correctly. This includes National Insurance thresholds, statutory payment rates and any other figures that affect payroll calculations.

System updates are basic housekeeping, but they are critical. Even a small configuration error can create repeated issues across multiple pay runs. A thorough update and sense check at the start of the tax year will help protect compliance and reduce unnecessary rework later.

Submit your final 2025/26 payroll reports correctly

Before fully moving into the new tax year, make sure the previous one has been closed properly. HMRC’s guidance on sending your final payroll report explains what needs to be included in your final Full Payment Submission or Employer Payment Summary. HMRC has also highlighted in its February 2026 Employer Bulletin that your last FPS or EPS up to and including 5 April 2026 must include the indicator showing it is the final submission for the year.

Where an EPS is required, payroll teams should make sure it is submitted by the relevant deadline. This is one of those routine tasks that can be missed in a busy period, but it plays an important part in helping HMRC finalise records accurately.

Issue P60s by the 31 May deadline

All employees who were employed on 5 April must receive a P60 by 31 May. HMRC’s guidance on giving employees a P60 confirms the requirement and explains who must receive one.

This is more than a year-end formality. For many employees, the P60 is an important record for personal tax, mortgage applications and financial administration. Issuing it accurately and on time reflects the care and professionalism that strong payroll teams bring to their work.

Good payroll housekeeping makes a real difference

Strong payroll processes are built on attention to detail. Checking pay rates, reviewing tax codes, updating thresholds, submitting final year-end reports and preparing P60s all form part of a well-managed start to the tax year. These are practical tasks, but they also support something bigger: confidence in the payroll function.

For employers and payroll professionals alike, getting the fundamentals right now can create a stronger foundation for the rest of the year. It helps reduce pressure, supports compliance and keeps payroll running reliably for the people who depend on it.