Some employers may choose (or need) to pay their employees earlier than usual during the Christmas period or due to a bank holiday falling on the usual pay date. 

Regardless of the reason, it is important that your PAYE submissions include the usual payment date, and not the earlier date that employees actually receive their pay.

HMRC have asked that If you do pay early, then it is important that you still report the normal payment date on the FPS that you send to HMRC, and not the actual (earlier) pay date.

Reporting the earlier payment date can cause issues for employees who claim Universal Credit (previously known as Tax Credits).

Example:

If you pay employees early, for instance on 19th December, instead of the usual last day of the month (31st December), you should:

• The payment date on the Full Payment Summary (FPS) should report 31st December (your usual or contractual payment date).
• Submit the FPS to HMRC on or before 31st December.

Note: If the earlier payment date (19th December) is reported instead, employees might appear to have received two payments within one Universal Credit assessment period and none in the next, which can mean their Universal Credit is withdrawn one month and then increased the next. The process above helps to protect employees’ eligibility for income-based benefits such as Universal Credit.