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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 latest 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.
However, while Employer Bulletin quotes the correct payment date to be reported in the FPS, it cites a later, incorrect date by which the FPS should be submitted.
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.
However, the correct date by which the FPS should be submitted to HMRC is on or before the actual payday (15 December using HMRC’s example). This is in accordance with reg 67B(1), Income Tax (PAYE) Regulations 2003, as confirmed in HMRC’s Running Payroll guidance: When to send your FPS.
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