The end of the Earlier Year Update

24 June 2020

HMRC’s Software Developer Support Team (SDST) has circulated an email which confirms that, from April 2021, the Earlier Year Update (EYU) will no longer be a valid submission for making adjustments to the tax year ending 5 April 2021.

Going forward, amendments to the tax year will need to be made using a Full Payment Submission (FPS) as the EYU will not be valid.

In summary:

  • Amendments to tax years ending on, or before, 5 April 2018 should be made using the submission of an EYU only
  • Amendments to the tax year ending 5 April 2019 from 20 April 2019 can be made using either an EYU or an FPS
  • Amendments to the tax year ending 5 April 2020 from 20 April 2020 can be made using either an EYU or an FPS
  • Amendments to the tax year ending 5 April 2021, and onwards, from 20 April 2021 should be made using the submission of an FPS only

The use of the FPS is being extended to allow employers and pension providers to report revised Year to Date (YTD) payment data after 19 April. HMRC piloted this extension prior to implementing it, and this has highlighted how the new process will bring greater simplicity by removing unnecessary complexity, and allowing HMRC systems to align with payroll records more quickly.

The Employer Payment Summary (EPS) remains unaffected by this change.

HMRC has confirmed that it is not expecting to make any changes to the format of the FPS where it is used after the 19 April following year end, but the FPS will provide an update to the last period reported, with a matching or later payment date for the individual to indicate a change in the year to date figures.

 


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