The Christmas holidays mean that normal payday date, are shifted about to take into account office closures during the festive period.
HM Revenue & Customs (HMRC) is offering guidance to employers about the need to make sure they report paydays correctly, so as not to impede employees’ eligibility for Universal Credit.
They are reminding employers that since 2019, there has been an easement in reporting PAYE in real time.
If companies pay early over the Christmas period, they are being asked to report their normal or contractual payday as the pay date on their Full Payment Submission (FPS). And to make sure the FPS is submitted on or before this date.
For example, if you pay on Friday 16 December 2022, but the normal (or contractual) payment date is Friday 30 December 2022, report the payment date on the FPS as 30 December and make sure the submission is sent on or before 30 December.
If you are concerned about how these changes affect your payroll processes, please speak to us.