The FPS replaces the Earlier Year Update

25 March 2019

The EYU enables employers to make corrections after the 19th April, by allowing them to report the delta amounts required that correct figures submitted during the previous tax year – along with similar lines to the process previously used when a P14 correction was required.


Unlike P14s however, this hasn’t proven to be useful in all instances where HMRC and the employer fail to reconcile year-end amounts. In this instance an EYU make be necessary – but what amounts should be reported where both the employer and HMRC believe that ‘their records’ are correct?


By enabling the submission of a YTD FPS, the reporting of year to date totals should remove the uncertainty that prevailed with EYUs.


During 2019/2020 employers will also be able to submit a YTD FPS where their payroll software has been enabled, equally during this year the EYU can continue to be submitted.


The Software Data Support Team (SDST) has issued an update to software developers, ahead of an update being published in the Employer Bulletin, that seeks to answer some of the more frequently asked questions by the software developer community.


Late reporting reason


The Late Reporting Reason H should be used on all YTD FPS submissions which correct earlier payroll data.


This aims to bring the process in line with submissions received on or before 19th April.


The payment date that should be shown


The format of the FPS isn’t changing and should be completed to include the latest payroll information. I.e. payment date, monetary values; leaving date etc. As the FPS will be an adjustment to the pay in that tax year the payment date should be equal to, or later than, the last payment date reported in that year to ensure our records are updated.


‘For example:

  1. An individual is in employment all year and the final FPS for the year is submitted on 30 March 2019, with a payment date of 30 March 2019
  2. It is then identified in June 2019 that an error occurred in their Month 11 FPS. The FPS should include the final pay date of 30 March 2019 (as the latest pay date in that tax year) and amended monetary values

Erroneous or generic dates such as 5 April should not be manufactured as this could cause further issues with the integrity of the data on the individual record.’


Earlier Years


The new process will allow for corrections to the 2018-19 tax year and future years. An EYU will still be needed for years 2013-14 through to 2017-18 and as each of these years becomes out of date, the need for an EYU will reduce.


2013/14 to 2017/18 (inclusive) - EYU must be used

2018/19 - an EYU or a FPS depending upon software product used

2019/20 onwards – an FPS must be used


What option does your payroll software offer in 2019/20?


At this time of the year new tax year updates will be issued, if not by now then very soon. It remains as important as ever to make time to read and absorb any changes that have been made so that you understand what your payroll software is offering in 2019/2020 for reporting corrections to the 2018/19 tax year. If, after reading the information provided by your payroll software provider, you are not clear, and in the event that you need to report a correction, seek clarification from them in the first instance.


CIPP comment
This improvement to RTI processes has been lobbied for since RTI was first being developed and so the CIPP policy team see this as a beneficial step – not a panacea for all that ails the PAYE process but certainly a step in the right direction for helping employers and their software providers, where reconciliation or corrections are needed. As with any change we value hearing from you about your experiences, please contact Samantha Mann CIPP senior policy and research officer at policy if you have any comments and experience that you wish to share.