Paying Employees Early Before Christmas
Some employers need to pay their employees earlier than usual in December. This can be for several reasons, such as businesses closing during the festive period and needing to pay workers earlier than normal or simply wanting to help staff enjoy a good Christmas. As in earlier years HMRC have announced that they have relaxed the RTI (Real Time Information) reporting obligations.
If you do pay early over the Christmas period, you must report your normal or contractual payment date on your Full Payment Submission (FPS). For example: if you pay your staff on 20 December 2024, but your normal payment date is 31 December 2024, please report the payment date as 31 December 2024. The FPS would need to be sent on or before 31 December 2024.
Doing this will help to protect your employees’ eligibility for income-based benefits such as Universal Credit, as an early payment could affect current and future entitlements.
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
