Paying Employees Early Before Christmas

As the holiday season approaches, many businesses may need to pay their employees earlier than usual due to closures or other operational adjustments.

• HMRC Guidance: HMRC has relaxed RTI reporting obligations for early Christmas payments.
• Accurate Reporting: When submitting your Full Payment Submission (FPS), report your normal or contractual payment date, even if you are making an early payment. For example, if your usual payday is the 31st of the month, but you are paying employees early on 20^th December, report the payment date as the 31^st of December.
• Submit FPS on Time: The FPS must be submitted on or before your normal payment date (in this example, December 31^st).

Accurately reporting your normal payment date:

• Protects Employee Benefits: Ensures your employees’ eligibility for income-based benefits such as Universal Credit, which can be impacted by early payments.
• Maintains Accurate Records: Helps maintain accurate payroll records for both you and your employees.

We recommend that you review your payroll procedures to ensure you have a clear plan for processing early payments and submitting your FPS accurately.

By following these guidelines, you can ensure compliance with HMRC regulations and minimise any potential issues for your employees and your business.

We are here to help on 01384 376 964 to discuss any specific questions or concerns you may have regarding early payments and RTI reporting.

Folkes Worton LLP Chartered Accountants
Accounting for the Future