A new payroll year has started and, among the endless double checking and final submissions, the first awkward challenge is already here. The Easter bank holiday is falling in such a way this year that it’s possible for your usual payment date to fall on one of four non-banking days.
This year, through April 19th – April 22nd are 4 non-banking days, so what to do if your usual payment date falls at this time?
Go on as normal:
It is essential that you report when you pay your employees and use the correct date on your submissions to HMRC. Although unlikely, there’s always a chance that you could impact your employee’s financial situation if you report the payment dates incorrectly.
However, if your usual payment date falls on a non-banking day, should you change the reporting date?
In this situation, a payment reporting easement applies. It is likely you will pay your employees before the Easter holiday, thus moving their pay date to April 18th. Despite this change of circumstance, it is important that the payment date used in your Full Payment Submission (FPS) still remains as your usual payment date.
To put it simply, when a regular payday falls on a non-banking day, but payment is made on the last working day available, report your usual payment date as normal. On this occasion, it should look something like this:
|Regular date of Payment||Non-Banking Date||Actual date of Payment (or earlier*)||
Payment date you use on your FPS
|19 April 2019||19 April 2019||18 April 2019||19 April 2019|
|20 April 2019||20 April 2019||18 April 2019||20 April 2019|
|21 April 2019||21 April 2019||18 April 2019||21 April 2019|
|22 April 2019||22 April 2019||18 April 2019||22 April 2019|
Remember that you can also report these payments in advance, however, we would recommend submitting within a range of just a few days to allow for any amendments as needed.
If you decide to pay your employees after Easter then the same method as above still applies. As such, it should look something like this:
|Regular date of Payment||Actual date of Payment (or later*)||
Payment date for FPS reporting purposes
|19 April 2019||23 April 2019||19 April 2019 *|
|20 April 2019||23 April 2019||20 April 2019 *|
|21 April 2019||23 April 2019||21 April 2019 *|
|22 April 2019||23 April 2019||22 April 2019 *|
The problem here is that your FPS should be sent BEFORE the Easter holiday as, if you submit the FPS on the actual date of payment then you will technically be reporting late. In this case, submit a “Late Reporting – reason code: G” as an explanation.