HM Revenue & Customs (HMRC) has recently confirmed that the real-time information (RTI) full payment submission (FPS) must be submitted on or before the date that the employee is paid, unless the normal payment date falls on a non-banking day – Saturday, Sunday or bank holiday. On these occasions, payment is made on the last working day before the regular payday or the next working day.
For PAYE purposes the payment may be treated as having been made on the usual payday, and this is the date that should be reported on the FPS as the payment date.
So, during this month of October, when an employee who is normally paid on the 26th monthly but is paid on the 25th instead (as the 26th October is a Saturday which is a non-banking day) the employee must have 26th October reported as the payment date. However, for National Insurance purposes, the payment must be treated as if it had been made at the normal time if the actual and regular payment days are in the same tax year. The payment may also be treated as having been made at its regular time when the payment dates cross a tax year, with Christmas being an exception.
Just another reason why outsourcing payroll has become so much more popular over the last few years!
We tailor our payroll services to the specific needs of your business, whether you want to run your payroll in-house or outsource, so please give our specialist payroll team a call on Rugby 01788 539000 to see how we can help you.