Our team has been working diligently to put the new legislation in place and updates to the workflow to make your year-end rollover process as simple as possible. Please see below our 2026/2027 YERO checklist.

You will need to complete the below steps first to begin the process of starting the new tax year for your company in MDP.

Before starting the YERO process in MDP, you will need to close the final periods for all the available pay cycles in your company. This will be after you send all your FPS for the final tax period in all of your pay cycles.

Say, for example, that if your company has some workers who are on a weekly pay cycle and some who are on a monthly pay cycle, you would have to close the periods for both pay cycles in order to start the YERO process. Only then will the YERO option be visible for your company.
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For example, below are the pay cycles in your company.
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In the above example, Weekly and Monthly are the active pay cycles, meaning still active employees are available in these pay cycles. For active pay cycles, you must run payroll for the workers (you can still exclude the workers) until the last period of the tax year in the specific pay cycle and close the final period in order for you to see the YERO option to start the new tax year.

There were no active workers in Fortnightly pay cycle. So you can just close that period, for the available pay date after sending P45s/leaver FPS for the left workers in that pay cycle.

As mentioned above, you have to close the periods of all available pay cycles in your company to start the new tax year.
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After you close the final period of all the available pay cycles in the current tax year, the "YERO" option will be available to the left of the "Import Pay Items" option under the Payroll Tab in the Current Period.
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Please click the "YERO" button to initiate the process of starting the new tax year.

There are four steps in this process:
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1. Extend Pay Cycles
2. Update Tax Allowances

3. Generate P60s
4. Final EPS Submission
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Of the above four steps, the first two are mandatory to start the new tax year for your company. Once you start the first step, you won't be able to edit any employee's employment details in your company since it will be locked. The below screen will appear when you click the "YERO" button in your company.
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The first step is to extend the periods for your existing pay cycles. The existing pay cycles in your company will be listed here. You have to either extend or stop each of your pay cycles to go to the next step in the process.

Click "Extend" to extend the period of your pay cycle so that you can continue to run payroll for the employees in that pay cycle (or) "Stop" to not show the pay cycle in your company moving forwards. If you click "Extend", it will show the populated calendar for the new tax year (26/27) based on the selected pay cycle. If you want to edit the regular pay date, you can click the "pen" icon to edit it and click "Save" once you reviewed the pay dates. This will save the pay dates for the new tax year.
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Similarly, you must do the same for all pay cycles; only then can you proceed to the next step in this process. Once you have extended the pay cycles, it will show as "Extended"/"Stopped" in the Pay cycle's tile.
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Once you extend/stop the pay cycle, the system will automatically navigate to the next step, i.e., update tax allowance in your company for the new tax year.

You have to update whether your company is eligible for Employment allowance, apprenticeship levy or small employers' relief. If eligible, you can toggle on and give your company's allowance for the new tax year (or) you can leave it as is and Click "Save" to proceed to the next step. This will save the tax allowances for your company for the new tax year.
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As soon as you finish this step, the system will take you to the next step, and at the same time, the "Next" and "Finish" button will also be enabled. It means the new tax year has already been enabled for your company. You can do the final two steps later on as well if you wish (Send P60s and Submitting Final EPS for the tax year).
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If you click "Finish", you can see the pay cycles with the first pay date in the new tax year, and you can start the process to run payroll in the new year.​
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P60s would have been generated for all of your employees at this point. You can send P60s to all employees by clicking "Send P60s," then "Email P60s" to send them, and upload them to the portal by clicking "Send P60s to Portal".
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If you don't want to send P60s at this point, you can always send P60s by going to "Reports" -> P60s -> Send P60s.
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Once you send the P60s, you can either submit the final EPS for the tax year or, if you prefer to do it later, click "Finish" to complete this process. However, ensure you submit the EPS later under the "HMRC & EPS" tab -> "EPS".

The figures for the final month will automatically be populated in this screen based on the payroll run for the final period of the tax year. You can review the figures for all the fields once and click "Submit", which will submit your company's final EPS for this tax year. The system will automatically check this box when you do this step.
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The process will be fully completed if you submit the final EPS for the previous tax year. If you didn't submit in this step, please complete it in the EPS screen "HMRC & EPS" tab -> "EPS".
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I hope the above information helps you start the new tax year in MDP. Please don't hesitate to reach out to us if you have any queries😊 We will be happy to assist you!!