With the countdown to Christmas now underway, employers must remember that specific reporting requirements apply to any company planning to pay employees early and change their payment date in December. Our employment tax team explains.
Reporting early Christmas payments
If you decide to pay your employees earlier than their regular payday in light of Christmas, you must report the normal or contractual payday on your Full Payment Submission (FPS). This still applies if you have made an early payment.
For example: If the usual payday at your company falls on the 28th of every month but you choose to pay your employees on the 15th December instead, you must still report the payment day on the FPS as 28th December and ensure that the FPS submission is sent on or before 28 December 2023.
Protecting Universal Credit entitlement
If you mistakenly report the actual payment date for December on your FPS (e.g. 15th December), your employees’ entitlement to Universal Credit may be affected. It is essential to report the contractual payday, even if payment has been made earlier, in order to safeguard these benefits.
Overriding PAYE reporting obligation
Even if you pay your employees earlier in December, you are still required to submit accurate payroll records and FPS submissions on or before the contractual scheduled payday for each employee.
Stay compliant with specialist payroll support
Navigating payroll regulations can prove a challenge for employers all year round, not just at Christmastime. With support from our Employment Tax specialists, you can have peace of mind, knowing that your payroll processes are compliant with HMRC guidelines and protect your interests as well as your employees’. Contact us today to discuss your needs.
