09 October 2023
HM Revenue and Customs (HMRC) is currently seeking feedback on draft regulations relating to the reporting of salary advances. The proposals would make it so that only one FPS is required per pay period, even if an advance is paid during that period. Currently an additional FPS should be required, however, HMRC has declared that they are happy for customers to report all salary payments on the normal submission, on or before payday.
The CIPP policy team wanted to take the opportunity to find out what methods payroll professionals are actually using and feed this back as part of our consultation response.
88.5% of respondents are submitting their salary advances with their standard reporting, on or before payday. These employers are either taking advantage of the easement given by HMRC or were operating under the assumption this was the correct method of processing. Either way, it seems that the proposals from HMRC will be very welcome and codify the position most payroll professionals are taking.
7% of respondents are operating compliantly with current regulations, despite the easement. This means that some of you are taking on more administrative burden than you may have to under the circumstances. It may be worth reviewing your processes to streamline your operations.
The remaining 4.5% indicated they were operating an alternative method, however we did not ask for further explanation on this response.
Thank you very much to everyone who took the time to respond to this quick poll. Keep an eye out for the next one and, if you are a member, keep an eye out for our response to the consultation in the policy hub soon.
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