Advances of salary will be able to be reported via PAYE real time information (RTI) as part of regular earnings rather than when advances are paid.

Financial struggles in the current economic climate due to significant cost of living increases has seen a growing demand for early salary payments by employees. Historically, HMRC viewed these payments as advances reportable, under RTI, at the date of payment. This resulted in additional employer reporting requirements.

In Agent Update 102, published on 17 November 2022, it was stated that current legislation will be amended so that salary advances can be reported once, on or before, an employee’s contractual pay day. This change eases pressure on the reporting process by allowing advances to be combined with regular earnings as a singular amount.

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