Full Payment Submission Date for Christmas

HMRC stipulate that the date of the Full Payment Submission (FPS) is the actual pay date and cannot be a weekend or bank holiday.  However, it needs to be remembered that the FPS date can adversely affect entitlement to benefits including Universal Credit as they are calculated by date.

During the Christmas period, a business may close meaning workers need to be paid earlier than normal or the employer may agree to pay early in December.

There is a permanent easement in place for employers to report PAYE information in real time over the Christmas period.

Businesses that pay wages early over the Christmas period should report their normal or contractual payday as the payment date on their Full Payment Submission (FPS) and not the early payment date.

They must also ensure that the FPS is submitted on or before this date.

Doing this will help to protect employees’ eligibility for Universal Credit, as reporting the payday as the payment date may affect current and future entitlement.

HMRC provides the following illustrative example:

If you pay on Friday 15 December 2023 but the normal or contractual payment date is Friday 29 December 2023, you will need to report the payment date on the FPS as 29 December 2023 and ensure the submission is sent on or before 29 December 2023.

The overriding PAYE reporting obligation for employers is unaffected by this exception and remains that you must report payments on or before the date the employee is paid.

This article provides general rather than specific guidance only, no guarantees can be made concerning its suitability for everyone.

The information is valid at the time of publishing and is provided without any warranty of any kind, express or implied. For more specific guidance on your individual circumstances, please take professional advice. No liability will be accepted for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided.

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