Find out how UK production teams can streamline their payroll year-end and ensure a smooth transition to the new tax year.
With the UK tax year ending on April 5, now is the time to start thinking about your final production payroll and doing those housekeeping jobs, so you can start the new tax year on the right foot with up-to-date records.
To help, we’ve put together a checklist of key steps production teams can take to make their last payroll of the tax year as painless as possible.
Confirm any leavers
Before the end of the tax year, it’s important to let your payroll provider know of any crew members who have left your production during the year. By doing this, your payroll provider will be able to provide accurate data to both HMRC and your pension provider, so your records will be up to date for the new tax year.
This is particularly important for your PAYE crew because if HMRC does not receive their leave dates in a timely manner, this can directly impact their tax, which in some cases can result in HMRC incorrectly thinking that they have two jobs and taxing them accordingly.
All you need to do is send your payroll provider a list of those people who have left the production and the date they left, and they will do the rest.
If you work with Entertainment Partners, on request, we can provide a list of active crew members along with the last date they were paid to make it even easier for you.
Note that all data provided in the final week will be used to complete P45s and P60s, so making sure leave dates, address updates and any other changes are in is crucial.
Your final payroll – check and double check!
It’s important that you send your last payroll in as soon as you can; the quicker you send it in, the quicker your payroll provider can send off your final submission to HMRC. Your payroll provider will then complete the necessary steps to ensure your payroll is ready for the new tax year.
It’s critical at this time of year to double check you have the correct tax status for any new starters in the final week, especially for PAYE! It’s more complicated to correct someone who was paid as Appendix 1 and should have been PAYE or vice versa, due to the short timeframes at this time of year.
If you have any questions or concerns about getting your payroll in for the final week, let your payroll provider know in advance and they will support you with whatever you need.
Things to remember:
- Submit leave dates as soon as possible
- Submit your payroll as soon as you can (or let your payroll provider know when to expect it)
- P60s go to all employees who are still employed on April 5 (delivered by May 31, 2026)
- P45s go to any leavers
Things to consider for the new tax year
It’s going to be a busy year ahead for employers and payroll providers with the new employee rights that are coming. Some of those changes take effect from April 2026, whereas others will take effect later in the year or in 2027.
Factor rate changes into your budgets
The start of each tax year is generally when any new tax rates take effect.
The following statutory rates will increase from April 6:
- Statutory Sick Pay will increase from £118.75 a week to £123.25 a week (or 80% of the employee’s earnings, whichever is lower).
- Statutory Maternity Pay (SMP), Statutory Maternity Allowance, Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Statutory Shared Parental Pay (ShPP) and Statutory Parental Bereavement Pay (SPBP) will increase from £187.18 a week to £194.32 a week (or 90% of the employee’s earnings, whichever is lower).
For more information on payroll tax changes affecting production budgets in 2026, see our detailed overview.
Apply for the Employment Allowance
In 2025 the government increased the employment allowance from £5,000 to £10,500 to offer some reprieve for smaller businesses. This means that eligible employers only start paying employer NICs when each employee’s earnings have passed the £10,500 threshold.
It’s important to note that employers must apply for this allowance for each tax year (it isn’t applied automatically). Once your claim has been submitted, you can immediately start using your allowance.
Speak to your payroll provider about how to apply for the allowance and get an idea of the timing so that you can factor this into your cash flow.
Entertainment Partners will provide you with an application form if you would like us to apply for this on your behalf.
Confirm any tax code changes
At the start of the new tax year, HMRC will issue P9 tax notices informing employers about any changes to their employees’ tax codes. Most productions will opt to have these notices sent directly to their payroll provider. If not, you'll receive these in the post and will need to pass them on to your payroll provider so that they can make sure each employee’s tax code is up to date.
Preparing for changes to employee rights
Workplace rights are changing from February 2026. These reforms have been developed in partnership with businesses and are designed to support a productive, fair economy that works for employers and employees alike.
Changes are being introduced gradually, giving you time to prepare. The UK government website provides step-by-step guidance, practical tools and access to expert support to help your business get ready for the changes coming over the next 18 months.
Other legislative updates
In line with recent budget announcements, we’ve outlined the new rates, effective from April 2026, to help employers prepare for compliance and budgeting.
National Minimum Wage
National Minimum Wage (NMW) rates will be adjusted for the upcoming fiscal year. These changes reflect the government’s commitment to supporting lower-wage workers and addressing cost-of-living pressures.
Statutory payments
Student loans and postgraduate loans
Below are the rates for the upcoming tax year. Note that we're yet to receive confirmation on Plan 4, although it is expected to rise to £33,795. These rates are also subject to change before April 2026.
PAYE 2026-2027
- PAYE personal allowance: £12,570
- PAYE thresholds:
- Weekly: £242
- Monthly: £1,048
- Standard tax code: 1257L
- Emergency tax codes:
- Tax code uplifts:
- Income tax rates – England and Northern Ireland
- Basic rate (20%): £1 – £37,700
- Higher rate (40%): £37,701 – £125,140
- Additional rate (45%): £125,141 ≥
- Income tax rates – Scotland
- Starter rate (19%): £1 – £2,827
- Basic rate (20%): £2,828 – £14,921
- Intermediate rate (21%): £14,922 – £31,092
- Higher rate (42%): £31,093 – £62,430
- Advanced rate (45%): £62,431 – £125,140
- Top rate (48%): Above £125,141 >
- Income tax rates – Wales
- Basic rate (20%): £1 – £37,700
- Higher rate (40%): £37,701 – £125,140
- Additional rate (45%): £125,141 ≥
Simplify payroll compliance with Entertainment Partners
Staying on top of your compliance requirements can be daunting, but an experienced payroll provider will help you to mitigate your risk and give you peace of mind.
At Entertainment Partners, our UK-based team has deep expertise in local payroll law and can help your production to navigate the legislative requirements and compliance challenges with confidence. Get in touch to find out more.
This article contains general information on a subject that may be of interest to you. Nothing in this article should be considered payroll, tax or legal advice. You should consult with your own advisors regarding the applicability of this information to your specific circumstances.
