HMRC issues guidance for employers regarding Christmas wages payments

Over the Christmas and New Year period many employers pay their employees earlier than usual. In some cases, these early payments can have a detrimental effect on employees’ Universal Credit entitlement. To protect employees’ entitlement HMRC has released guidance for employers on their Real Time Information (RTI) reporting obligations for any salary or wages payments that are made earlier than usual due to Christmas or New Year.

Employers who pay earlier than usual, when reporting this to HMRC, should report the normal pay date on the Full Payment Submission (FPS).

For example, if you pay on 17‌‌‌ ‌December‌‌ ‌2021 but your normal payment date is 31‌‌ ‌December‌‌ ‌2021, please report the payment date as ’31‌‌ ‌December‌‌ ‌2021′. In this example the FPS would need to be sent on or before the 31‌‌ ‌December 2021.

Reporting in this way will help protect your employees’ eligibility for Universal Credit, because reporting a payment earlier than usual could cause their Universal Credit to be reduced or even stopped.

HMRC have provided further information on this included in their October 2021 Employer Bulletin, available here.