Reporting PAYE information over the Christmas Period

Following on from HMRC’s guidance in December 2018 regarding a temporary easement to submitting an FPS (Full Payment Summary) in real time, the decision has been made to make this change permanent.

As we all know some companies pay their employees earlier during the Christmas period due to a variety of different reasons, such as an office shutdown or staff holidays. Under RTI rules this would mean that an FPS would need to be submitted on the date that employees get paid.

However, during December 2018 HMRC advised employers to submit their FPS showing their normal contractual pay date, regardless of when employees were actually being paid, as it was recognised that the early reporting date was having a knock-on effect to a person’s eligibility for universal credit.

For example;

A company has a contractual pay date of the 29th December. For this current year this date falls on a Sunday. Employees will therefore receive their pay on Friday 27th December. The FPS needs to show the contractual pay date of the 29th December and be submitted on or before this date.

So, going forward, in any case where the employee may be being paid earlier than their usual pay date it is important to remember that the payment date on the FPS submission must state the normal contractual payment date, even if this date falls on a weekend or a bank holiday. The FPS must also be submitted on or before the normal contractual payment date.

If you have any questions or require any more information on this subject, please contact Emma Mahoney or our Payroll Solutions team.