Complete Payroll Guide 2025 – Inc. Pay Dates, P11D Phase-Out & Tax Deadlines

Managing payroll is one of the most critical responsibilities for UK employers. Ensuring employees are paid on time, complying with HMRC deadlines, and keeping up with regulatory changes such as the phase-out of P11D forms can seem overwhelming. However, with proper planning and an understanding of key dates, it becomes much easier to handle.

This blog outlines everything you need to know about pay dates, HMRC tax deadlines, filing P60s, reporting benefits through P11D forms, and transitioning to payrolling benefits in kind (BIK). We also provide a comprehensive January-to-December payroll calendar tailored for 2025, so you’re always ahead of the curve.

Key Pay Dates: Popular Dates and a 2025 Calendar

Employers in the UK often choose two primary pay dates: the 25th of each month and the last day of the month. These dates align well with monthly billing cycles, giving employees time to plan their budgets.

Here’s a detailed payroll calendar for 2025, factoring in weekends, bank holidays, and year-end deadlines:

Month	25th Pay Date	Last Day Pay Date	Notes
January	Friday, 24th	Friday, 31st	Process earlier if paying via BACS to avoid weekend delays.
February	Tuesday, 25th	Friday, 28th	Short month—verify payroll schedules in advance.
March	Tuesday, 25th	Monday, 31st	Prep for end-of-tax-year processes by 5th April.
April	Friday, 25th	Wednesday, 30th	Update payroll software for the new tax year starting 6th April.
May	Friday, 23rd	Friday, 30th	Ensure P60 preparations are underway (due by 31st May).
June	Wednesday, 25th	Monday, 30th	Finalize P11D reporting by 6th July.
July	Friday, 25th	Thursday, 31st	Submit and distribute P11Ds by the 6th July deadline.
August	Monday, 25th	Friday, 29th	Last working day of August avoids weekend disruptions.
September	Thursday, 25th	Tuesday, 30th	Quarter-end payroll reconciliation is due.
October	Friday, 24th	Friday, 31st	Plan payroll early for 25th due to weekend.
November	Tuesday, 25th	Friday, 28th	Account for any year-end bonuses.
December	Thursday, 25th	Wednesday, 31st	Process early for 25th due to Christmas Day bank holiday.

Key Notes for 2025 Payroll:

• Bank Holidays: Adjust payroll dates for months like December (Christmas Day) and January (New Year’s Day).
• Weekends: Pay dates falling on weekends should be processed earlier to ensure employees are paid on time.

HMRC Tax Deadlines to Remember

HMRC requires employers to submit taxes and payroll information within strict deadlines to avoid penalties. Here are the main tax-related dates:

PAYE Tax Deadlines

• Monthly PAYE Payments:
  • Due by the 19th (post) or 22nd (electronic) of each month.
  • For example, January’s PAYE taxes must be submitted by 22nd January 2025 if paying electronically.
• Quarterly PAYE Payments (if eligible):
  • Deadlines fall on 22nd January, 22nd April, 22nd July, and 22nd October 2025.

P60 Filing Deadline

• Employers must provide employees with their P60s by 31st May 2025. The P60 summarizes an employee’s total income and deductions for the 2024/2025 tax year.

P11D Reporting Deadline

• Submit P11Ds to HMRC: Due by 6th July 2025, reporting all taxable benefits provided to employees.
• Distribute P11D Copies: Employees must also receive their copies by this date.

P11D Phase-Out: What Employers Need to Know

The P11D form, traditionally used to report benefits in kind, is being phased out as HMRC moves towards a more streamlined system.

When Will P11D Forms Be Phased Out?

From the 2025/2026 tax year onwards, employers will no longer file P11D forms. Instead, all benefits in kind will be taxed in real time through payrolling BIK (Benefits in Kind).

What Is Payrolling BIK?

Payrolling BIK is a system where benefits are taxed monthly through employees’ salaries rather than being reported at the end of the tax year. Employers report benefits to HMRC in real time via their payroll submissions, eliminating the need for year-end P11D forms.

How to Prepare for the P11D Phase-Out

Employers should start transitioning to payrolling BIK as soon as possible to ensure compliance and avoid last-minute issues.

Steps to Transition:

1. Register for Payrolling Benefits: Sign up via HMRC’s online portal before 5th April 2025 to apply payrolling BIK for the 2025/2026 tax year.
2. Update Payroll Software: Ensure your software supports payrolling benefits to handle deductions automatically.
3. Notify Employees: Clearly communicate how benefits will now be taxed monthly instead of being reported on a P11D.

December Payroll: Special Considerations

The 25th of December in 2025 falls on Christmas Day, a bank holiday. If you pay employees on the 25th, ensure payments are processed earlier:

• BACS Payments: Process no later than 22nd December 2025 for funds to clear before the holiday.
• Faster Payments: Payments made on 24th December should still clear on time, but earlier processing is advisable.

For employees paid on the 31st, consider New Year’s Eve banking hours to avoid any last-minute delays.

FAQs

• What happens if payroll taxes are paid late?
  Late PAYE payments to HMRC may result in interest charges and penalties. Ensure payments are submitted by the 22nd of each month if paying electronically.
• What does payrolling BIK mean for employees?
  Employees will see their benefits taxed monthly through their salary, spreading the cost evenly across the year instead of an adjustment at year-end.
• Can I still use P11D forms in 2025?
  Yes, P11D forms will still be required for the 2024/2025 tax year. However, they will no longer be necessary from the 2025/2026 tax year.
• Do I need to issue P60s for all employees?
  Yes, all employees employed as of 5th April must receive a P60 summarizing their earnings and tax contributions for the tax year.
• How do I register for payrolling BIK?
  You can register online through HMRC’s payrolling benefits portal. The registration must be completed before 5th April for the upcoming tax year.