RTI reporting obligations for early Christmas pay dates
11 November 2020
There are a number of employers who pay their employees earlier than usual over the festive period, if, for example, the business is shut for Christmas and New Year. Any businesses paying early need to ensure that the normal payment date is recorded on their Full Payment Submission (FPS) for December, and not the earlier pay date observed in December.
An example is provided where an employer pays staff on 18 December 2020 but would ordinarily have paid them on the last working day of the month, so 31 December 2020 would be the normal pay date. The pay date recorded on the FPS should be 31 December 2020, and the FPS must be sent on or before that date.
Taking this step will ensure that employers help to protect employee eligibility for Universal Credit, as reporting an early payment date could have an impact on their entitlements.
HMRC advises that further detail will be made available in Employer Bulletin 87, which is due to be published in early December 2020.
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