Get ready for the new tax year

Summary

How to set up Sage Payroll software to process payroll in the 2025 tax year.

Description

TIP: This is the final step. Go to the Payroll Year End 2024 hub to see them all.

Once you complete your payroll processing in the 2024 tax year, you need to create the 2025 tax year for each of your payrolls.

Resolution

Create and open the 2025 tax year

Open Sage Payroll 2024 and log in to a payroll as normal.
Confirm the payroll status is at EOP for the final period of the year.
Go to Year End, then Tax.
Select Set up 2025 Tax Year, then Continue.
Select Close, then close Sage Payroll 2024.
From the Windows desktop, open Sage Payroll 2025.
Log in to a payroll as usual.
NOTE: Before you start processing in the new tax year, check your version is 28.0 or above.
Repeat the above steps for all payrolls you want to use in 2025.

Set up the new tax year calendar

Go to Company/Payroll then select Enter Calendar Details.
If your financial year starts 1 January, a prompt appears to clear down financial year balances.
Select Continue, then OK.
Go to the New Calendar tab.

In the 1st Pay Period Dates, enter your first Pay Date of the new tax year.
This date must fall in the first tax period and determines all future pay dates for the year.

▼ View first pay date range

Payroll Frequency	First Pay Date Range
Weekly	January 1 - January 7
Fortnightly	January 1 - January 14
Monthly	January 1 - January 31
Bi-monthly	January 1 - January 16
4-Weekly	January 1 - January 28
Quarterly	January 1 - March 31

The Pay Date field is the date that you pay your employees wages in the pay period.

You can also select your first Bank Date, and if applicable, your Cheque Date and Giro Date, if different to the Pay Date.
If processing monthly, bi-monthly or quarterly payroll, you must choose Valid Pay Days.
There's also a Last Day of Month option, if this is your usual pay date.
Select Update, you return to the Calendar Details tab.
Check and if required make changes to any pay dates in your new calendar.
Check the details are correct in the Financial Year Details section.
Select Save.

Set period one of the new tax year

Go to Processing then select Set Period.
In the New period to process box, enter 1.
Confirm the dates and information are correct for the first period of 2025. If not, edit as required.
When you finish, select OK.
NOTE: If your 2024 holiday year ended on 31/12/2024, you automatically receive the option to roll forward your holiday and absence years.
Edit the settings if required, then select Continue Set Period.

When you retrieve RPNs for period one any changes to employees tax credits, cut off points, and USC thresholds, import.

Validate your payroll data in 2025

Go to Reports then Validate Payroll Data.
If any errors appear on this report, you must resolve them now.

Construction Workers' Pension Scheme (CWPS)

If you're part of the CWPS, when the CWPS year ends, you must clear down the CWPS history and balance from your employee records. You can also set up the CWPS calendar for the new CWPS tax year.

NOTE: The 2025 CWPS year starts on 30 December 2024.

Complete your Construction Workers' Pension Scheme (CWPS) year end tasks.

Enable Central Statistics Office (CSO) reporting

If the CSO selects your business for surveying, set up CSO reporting, if you haven't already.

Assign Additional Superannuation Contribution (ASC) settings

Additional Superannuation Contribution (ASC) is only relevant to public sector employees.

If any employees are liable for ASC deductions in 2025, you must assign Additional Superannuation Contribution (ASC) settings within their records.

What to do next

Once you complete the sections above in each of your payrolls, you're ready to process your payroll, as normal in the new tax year.