Some employers find it necessary to pay their employees earlier than usual in December. This can happen for various reasons, such as businesses closing over the festive period and needing to process payments ahead of time. As in previous years, HMRC has confirmed a relaxation of the RTI (Real Time Information) reporting requirements for such situations.

If you do make an early payment during the Christmas period, it is essential to report your employees’ usual or contractual payment date on the Full Payment Submission (FPS). For example, if you pay employees on 20 December but their normal payment date is 31 December, you must still report 31 December as the payment date. The FPS must also be submitted on or before 31 December.

Adhering to this guidance helps to protect your employees’ eligibility for income-related benefits such as Universal Credit, as an early payment could otherwise impact their current and future entitlements.