Running payroll involves more than simply paying your employees. Employers also need to submit payroll information and make payments to HMRC by the correct deadlines.One of the most important payroll submissions is the Full Payment Submission, or FPS. It provides HMRC with information about payments made to employees and deductions such as Income Tax and National Insurance.HMRC normally requires employers to send the FPS on or before the employee’s payday. This applies even if your business pays HMRC quarterly rather than monthly.Submitting payroll information late can create discrepancies on the employer’s HMRC account and may result in penalties depending on the circumstances.
Businesses should therefore finalise payroll sufficiently early to review employee hours, salaries, bonuses, deductions and changes before payday arrives.
An Employer Payment Summary, or EPS, is used in certain situations. For example, an employer may need to submit an EPS when claiming eligible statutory payment reductions, claiming Employment Allowance or reporting that no employees were paid during a tax month.Where an EPS affects the amount payable to HMRC, it generally needs to be submitted by the 19th following the relevant tax month so HMRC can apply the reduction.Employers also need to pay the PAYE, National Insurance and other payroll deductions owed to HMRC.
Electronic payments are normally due by the 22nd of the month following the end of the relevant tax month. If payment is made by post, HMRC generally needs to receive it by the 19th instead.Some smaller employers that usually owe less than £1,500 each month may be able to arrange quarterly PAYE payments instead, although they still need to comply with their payroll reporting responsibilities.
Employers should regularly compare their payroll records with the balance shown on their HMRC account. Differences can occur because of incorrect submissions, duplicate payroll reports, amendments or payments that have not been allocated as expected.Accurate payroll software can help calculate amounts due and prepare the relevant HMRC submissions, but employers should still review the information before filing.
Errors should be corrected as soon as they are discovered. If incorrect employee information is reported through an FPS, HMRC guidance provides procedures for correcting payroll submissions.Maintaining a payroll calendar is one of the simplest ways to avoid missing deadlines. Record employee paydays, FPS submission dates, EPS deadlines and PAYE payment dates so payroll responsibilities are not overlooked.If your business employs several people or has different pay frequencies, professional payroll support can reduce the administrative burden and help ensure your submissions remain accurate.
At EasyFig, we can manage payroll reporting, calculate PAYE and National Insurance and help keep your business organised around important HMRC deadlines.
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