Year-end step 4: Updating your data for the new tax year – Ciphr

This article forms part of the Ciphr Payroll (Accord) year‑end: complete process overview and applies to all customers.
This should only be completed after following Year-end step 3: Data validation, reconciliation of year to date totals, printing year end reports
This stage includes creating the new tax year, resetting employee accumulators, updating employee tax codes, managing processing history, and reviewing pension rates.
Please refer to the relevant checklist linked below which will help you to follow the procedure in the most effective way and prevent any important steps from being missed for the overall end of year procedure:
- On-premise customer checklist
- Hosted customer checklist

Step 4. Updating your data for the new tax year

⚠ Important:

Before creating the new tax year (step 4.1), please ensure that you have submitted final for the tax year FPS/EPS returns. It's also strongly recommended to reconcile YTD processed totals against submitted YTD figures to HMRC before you go to step 4.1.
If you are processing BIK through Ciphr Payroll, please ensure you have run and saved BIK EE Statement and ER Summary reports. Please note, if these reports are not run before rolling over to the new tax year, you will not be able to re-run these reports.
If you process car and fuel benefits through payroll, please complete Step 2.9 - Car/fuel benefits year-end procedure
If you process CIS subcontractors in Ciphr Payroll you must create and submit the CIS monthly return for March before running step 4.1. You will not be able to create and submit the CIS return for March once you have reset employee accumulators.

This Step includes:

4.1 Creating a New Tax Year
4.2 Resetting Employee Accumulators
4.3 Updating employee tax codes
4.4 Deleting employee processing history
4.5 Checking Pension Rates

4.1 Creating a New Tax Year

4.1.1 Start Ciphr Payroll. Login to company 01 as ADMIN. Please ensure that you are in the current tax year.

You can check these settings on the status bar of Ciphr Payroll (at the bottom of the main screen).

⚠ Important: If you run several companies in Payroll you need to start by creating a new tax year in company 01 even if there are no employees in company 01.

4.1.2 Go to Utilities > Year End Utilities > Create New Tax Year…

The following screen will appear.

4.1.3 Click Start. You may be shown the following screen

4.1.4 Click Yes. You may be shown the following screen

4.1.5 Click Start. You will be shown the next screen

4.1.6 Click No

If you have created the new tax year in a company which is different from company 01 and the company uses the payroll calendar from company 01 this will complete the new tax year creation process.
However, if you created the new tax year for company 01 or a company with a company specific payroll calendar the tax year creation process will continue as follows.

4.1.7 A default calendar will be created for the new tax year. The calendar has Monday 6th April as the first tax week payment day. At this point you can change the calendar answering Yes to the following prompt.

4.1.8 If you answered Yes on the screen above the calendar edit window will be shown.

Here you can change the default calendar according to your requirements.
For example, to change the weekly calendar so that 6th April is the first tax week payment, enter the date o the Base Date field, click the Recalculate tab to re-calculate the weekly calendar, click Yes on the message below:

As a result, the new calendar will look as follows:

Click the Save button to save the changes

Notes:

If you set payment dates on your monthly payroll calendar you will also need to enter these under the monthly tab.
According to HMRC you must report the usual date that you pay your employees, even if you pay them earlier or later.
For example, if you pay your employees early because your usual payday falls on a Bank Holiday, you should still enter your regular payday.

You have created the new tax year data in company 01.
If you run more than one company on Ciphr Payroll you need to create a new tax year in all other companies.
To do this please repeat paragraphs 4.1.2 to 4.1.8 for all other companies.
If you need to change your default monthly calendar to be based on Tax Month and not on Calendar Month then:
Select Tax year option as shown on the right and click Recalculate tab
Tax Period months always run from the 6th of one month to the 5th of the next month.
Click the Save button to save the changes.

4.2 Resetting Employee Accumulators

Before starting payroll calculations in the new tax year you need to zero most employee accumulators and update employee tax codes.
Start Ciphr Payroll. Login to company 01 as ADMIN. Please ensure that you are in the current tax year.
You can check these settings on status bar of Payroll (at the bottom of Payroll main screen).
Go to Utilities > Year End Utilities > Reset Accumulators for EOY …

The following screen will appear

If this screen does not appear please contact Customer care.

4.2.1 Click OK on the above message box. The following screen will appear:

Ensure that on your system the same boxes are ticked.
Click the Accumulators tab and ensure that the ticks on your screen look exactly as follows:

Then click on Accumulators 39-76 page at the bottom and ensure that your screen looks exactly as follows:

Then click on Accumulators 77-114 page at the bottom and ensure that your screen looks exactly as follows:

Notes:

The ticks on the screens above are for standard accumulator headings and the assumption that your holiday year is January to December
(accumulators 69 – 72 are unticked and should be reset in December/January).
If your holiday year is the same as the tax year you may choose to clear (tick) accumulators 69-72.
The same care should be taken about resetting the pension YTD accumulators 95 to 108.
If you have some accumulators that are specific to your company, e.g. Christmas savings you wish to keep on the system, you may choose not to clear (untick) those accumulators.

4.2.2 Once you have checked which accumulators should be cleared click Start. The following message box will be shown.

Click Start to automatically backup your data before resetting the accumulators.

At the end of the backup process the window will display. Click Close.

The following message box will be shown.

4.2.3 Confirm to continue updating by clicking Yes. The resetting process will start and after it finishes you will be shown the following message box. Click OK.

4.2.4 Click OK to restart Ciphr Payroll

If you run more than one company on Payroll you will need to reset employee accumulators in all other companies. To do this please repeat step 4.2 for all other companies. You need to login to other companies as ADMIN and to ensure that you are in the current tax year.

4.3 Updating employee tax codes

Please consult the P9X form for full details on new tax year tax code updates.
Please see below for information on bulk tax code updates required by the P9X form.
- Copy the authorised tax code from the current tax year payroll record and continue to use for the new tax year
- Do not copy/carry over any ‘week 1’ or ‘month 1’ markings.
Please ensure that you have logged in to the new tax year, and the correct fin year. You can check these settings on the status bar of Ciphr Payroll (at the bottom of the main screen).
Please ensure that you have also cleared any employee global group so that all employees are included in the operation.
Go to Utilities > Year End Utilities > Tax Codes Update …
Ensure the following entries are on the Tax Codes Update form:
- 06/04/26 date is entered in the Create new tax code records with effective from date box
- Tick Remove ‘week 1’ or ‘month 1’ markings box
- Do not tick Do not remove ‘week 1’ or ‘month 1’ markings for employees not paid last tax year box
- Tick Do not change tax codes for employees left before 06/04/XX, and check the date is correct
As a result, your screen should look as follows. Click Start to start the Tax Codes Update.

On the next 2 message boxes click Yes to confirm you want to start updating tax codes

The Tax codes update log will be saved in the database. Click Yes on the next message box to view the log.

It is recommended that you save and print the Tax Codes update log.

To update the tax codes in other companies, login to each company in the new tax year (2026/27) and repeat the steps from above.

4.4 Deleting employee processing history

This function will assist with the implementation of personal data retention and erasure policies as adopted by your organisation to be compliant with GDPR requirements.
The function’s default setting is to delete employee processing history older than the 6 previous tax years. If you need to keep employee processing history longer than the default setting, you can change this on the payroll parameters screen, as shown below.
Go to Settings > Miscellaneous > Parameters … > Parameters2 tab

The function is available in the payroll module for the ADMIN user under the menu:
Go to Utilities > Year End Utilities > Delete Employee Processing History …

The function is able to:
- Automatically delete employees who left employment over a specified number of years ago (by default 6 years) with all processing history
- For current employees and more recent leavers, delete processing history older than a specified number of years ago (by default 6 years)
- Automatically delete audit history over 2 years old

Note: The application will permanently delete the above information from the database or application folder. It is advisable to take a backup of the company before proceeding (Step 1). To take a backup go to Utilities > Backup > Backup Company.

By default, in company 01 all 6 check boxes on the above screen will be ticked.
In other companies only the 3 top check boxes will be ticked, as encryption of XML files and deleting of log files, if selected in company 01, will include all companies.
To start the process click Start and you will be shown a log file with details of information to be deleted or encrypted.
If you accept this, enter password DelPRHistPwd123# on the next window shown below and click the Start button again.

The deletion log file will also be saved in the database and shown at the end of the process in the Log Viewer.

4.5 Checking Pension Rates

If there are no changes to statutory minimum pension contribution rates you should still check your contribution rates are in line with the table below:

Date	Employer minimum contribution	Employee minimum contributions	Total minimum contribution
April 2019 onwards	3%	5%	8%

You should also check whether you need to change contributions for public service pensions, such as:
- The Teachers Pension Scheme (TPS)
- The NHS pension schemes
- Local government pension schemes (LGPS)
If you have employees in the payroll system that are making contributions to a public service pension scheme, then the payment bandings (also called tiers) may need to be adjusted in Ciphr Payroll so that the contributions are correct post - April 1.
Please consult with your pension provider for additional details on any changes in public service pensions.
If you determine that Ciphr Payroll requires configuration to accommodate these adjustments, please reach out to Customer care, providing a detailed explanation of the necessary changes.
Well done that's another step completed. Now go to Year-end step 5: P60s distribution

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