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Paying employees early over the Christmas period

Paying employees early over the Christmas period

Tamsin Clark

During this festive season, some of you may plan to pay your employees earlier than usual. To ensure compliance and avoid any discrepancies, here is a reminder of the steps to follow in reporting these payments accurately to HMRC.

If you opt to pay your employees in advance over the Christmas period, it is important to report the normal or contractual payday as the payment date on your Full Payment Submission (FPS). Ensure the FPS is submitted to HMRC on or before this scheduled contract payday.

For instance, if the actual payment date is Friday, 15 December 2023, but the regular contractual payment day is Friday 29 December 2023, you must report the payment date in the FPS as 29 December 2023. It is important to submit this information on or before the contractual payday of 29 December 2023.

This will safeguard the entitlement of your employees who may be eligible for Universal Credit. Reporting the payday as the date payment is made might impact both current and future entitlements to Universal Credit.

This exception does not alter the overriding PAYE reporting obligation for employers. The obligation remains that you must report payments on or before the actual date the employee is paid.

For further advice, please contact your local Moore adviser