The payday rule
A Full Payment Submission normally needs to be sent to HMRC on or before the employee’s payday. The FPS reports pay, tax, National Insurance and other deductions.
Late employee information can therefore create a reporting problem even when the bank payment itself is made on time.
Maintain employee details
Record starters, leavers, changes of address, tax-code notices, statutory leave, pension changes and director status promptly. Use the correct starter information where a P45 is not available.
A change log gives the payroll processor a clear record of what changed and when.
After the FPS
Review the submission confirmation, provide payslips and check the amount due to HMRC. An Employer Payment Summary may be needed for reductions or periods with no payments. Electronic HMRC payments are generally due later in the month than postal payments.
Reconcile payroll reports to the bank and accounts rather than treating payroll as a separate system.
A practical next step
Set a monthly cut-off before payday for hours, bonuses, leave and employee changes. Approve a payroll summary before the FPS is sent.
Accountants4All can run payroll, manage the reporting timetable and provide the records needed for the accounts.
Official guidance
Rules and deadlines can change. Check the current official guidance and obtain advice for your circumstances.
GOV.UK: Running payroll and reporting to HMRCNeed a clear next step?
Talk through the records, deadline or setup involved.
This article provides general information and is not personal tax, legal or financial advice.