Correcting Payroll Reports Misaligned with Payment Dates and Tax Periods
When reporting PAYE in real time, the relevant Full Payment Submission (FPS) must report the correct payment date. This is the date on which employees were paid and not the date that the related payroll run was completed (unless these are the same). The FPS, and any EPS must also align to tax rather than calendar periods, otherwise payments may be allocated to the wrong tax periods.
As an example, if employees are paid on 7 October but payroll was run on 4 October the relevant FPS should give the:
- payment date as 7 October
- tax month as 6 October - 5 November
Reporting PAYE in real time has highlighted that not all employers are following this approach and guidance is provided by HMRC to correct earlier errors that may have occurred.