Some employers pay their employees earlier than usual over the Christmas period. This can be for a number of reasons, for example, during the Christmas period the business may close, meaning workers need to be paid earlier than normal.
If you do pay early over the Christmas period, please report your normal or contractual payday as the payment date on your Full Payment Submission (FPS) and ensure that the FPS is submitted on or before this date.
For example, if you pay on Friday 22 December 2023 but the normal or contractual payment date is Friday 29 December 2023, you will need to report the payment date on the FPS as 29 December 2023 and ensure the submission is sent on or before 29 December 2023.
This will help to protect any of your employees who are eligible for Universal Credit. Reporting the payday as the date payment is made may affect current and future entitlements to Universal Credit.
If any of your employees are on Maternity Leave and you have changed the December pay date, this will affect their average holiday pay. You will need to check whether your payroll software automatically adjusts for this and if not adjust the calculation manually so that they get paid correctly.
The overriding PAYE reporting obligation for employers is unaffected by this exception and remains that you must report payments on or before the date the employee is paid.
