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PAYE reporting for early payments of earnings at Christmas


Published: 07 Nov 2023 Update History

It is common practice for employers to pay earnings earlier than the normal or contractual payday at Christmas. But what date should employers quote on their PAYE RTI full payment submission (FPS)? And when should they submit the FPS to HMRC?

In its October 2023 Employer Bulletin, HMRC reminds employers who pay employees early at Christmas to report via PAYE RTI the normal or contractual payday as the payment date in the FPS. It also says that the FPS should be submitted to HMRC on or before that same date.  

Employer Bulletin gives an example of a payment on Friday 15 December 2023 to employees whose normal or contractual payment date is Friday 29 December 2023. It says that the payment date on the FPS should be reported as 29 December 2023 and that the FPS should be submitted to HMRC on or before that date.  

The Tax Faculty agrees that the payment date to be entered on the FPS is 29 December, (ie, the date of the payment that the return relates to). This is in line with para 19, Sch A1, Income Tax (PAYE) Regulations 2003. It is also confirmed in HMRC’s Running Payroll guidance: When to send your FPS.  

The faculty also agrees that the date by which the FPS should be submitted is also 29 December. This is because HMRC operates an easement, confirmed as permanent in December 2019 Employer Bulletin, which overrides reg 67B(1), Income Tax (PAYE) Regulations 2003 that normally requires the FPS to be submitted on or before the payment. The easement is confirmed at para 1.8 of Employer further guide to PAYE and National Insurance contributions 2023-24. but is not mentioned in HMRC’s Running Payroll guidance: When to send your FPS.

Changelog Anchor
  • Update History
    14 Nov 2023 (12: 00 AM GMT)
    The date by which the PAYE full payment submission should be submitted when paying early at Christmas has been corrected. This change reflects HMRC’s easement on reporting PAYE information in real time when payments are made early at Christmas.
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