Here at Lambert Chapman LLP, we know how important it is for some of our clients to be able to pay staff before the Christmas break.
Many employers bring their pay date forward over the Christmas period. It avoids the bank holidays and allows an early advance for that last-minute dash to buy the other half a present (guilty), or finish the Christmas shopping for friends and family.
HMRC recently sent reminders of the permanent easement on reporting Real Time Information (RTI) that applies during this time. Regardless of the date the money landed in the employee’s bank account, the payment date to be reported on the Full Payment Submission (FPS) should always be the contractual pay date.
If the pay date is brought forward because it falls on a weekend, bank holiday, or pay is made early for Christmas and/or New Year, the FPS should continue to show the normal, contractual pay date.
The main reason for this is reporting the incorrect date on the FPS could result in issues for employees that may be in receipt of Universal Credit.
To give an example:
- Contractual pay date is 25th of the month
- Christmas pay date is 20th of the month
- FPS payment date should be recorded as 25th of the month – in line with contractual pay date.
Whilst this might seem like a simple task, if the wrong date is used – it may result in a not so Merry Christmas for an employee who has to deal with the issues that could arise from Universal Credit adjustments in the New Year.
The Payroll Team wishes all employers a very Merry Christmas and prosperous New Year.
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.