Guidance for employers on RTI reporting obligations for payments made early at Christmas

You may have recently received the following email from HMRC Business Help and Support Emails

It is very important for employers to follow HMRC’s guidance on payment dates – both at Christmas/New Year (as below) and where employees are paid a day early/late because their regular pay day falls on a non-banking day, (for example, weekend or bank holiday) – this is described in HMRC’s further Guide to PAYE and NIC CWG2 at paragraph 1.8 where examples are given.

Putting in the wrong payment date can cause a ‘two monthly wages in one assessment period’ problem, as explained further on our main LITRG site.

Employer Update

"Dear Employer,

Guidance for employers on RTI reporting obligations for payments made early at Christmas

We know that some employers pay their employees earlier than usual over the Christmas period, for example the business may close for Christmas and New Year. If you do pay early, please report your normal payment date on your Full Payment Submission (FPS).

For example: if you pay on 20 December 2019 but your normal payment date is 31 December 2019, please report the payment date as ‘31 December 2019’. In this example, the FPS would need to be sent on or before the 31 December.

Doing this will help protect your employees' eligibility for Universal Credit, because reporting an early payment could affect further entitlements.

For further information, please refer to page 4 of the October Employer Bulletin."

(22-11-2019)