Reporting payroll: non-banking days

What to do when you pay your employees at a different time

The date you pay your employees will usually be agreed when they begin working for you. Typically, this could be at the end of a calendar month or on Friday each week.

It is essential that you report when you pay your employees on time and use the right payment date when doing so. Remember that if you use an incorrect payment date, this could impact on your employees’ financial situation, including any income-related benefits such as Universal Credit, so it is important that you send accurate reports to HMRC on time or as soon as you able to do so.

However, there may be occasions when you pay your employees at a different time and not on the agreed day or date. This can arise when the regular payment date falls on a non-banking day, ie on a Saturday or Sunday or on a bank holiday.

If so, a payment reporting easement applies to ensure that this payment is treated correctly for tax purposes. The date you should enter on your full payment submission (FPS) will depend on when you actually pay your employees and whether this is earlier or later than their normal payday.

Easter 2019

You may not be able to pay your employees on their regular payday during the Easter Holidays in April 2019 as there will be four consecutive non-banking days (19-22 April inclusive).

If you would normally have paid your employees on any one of those dates, but instead will pay them early on the last working day before the bank holidays, you must report your normal pay date on your FPS. For example:

Paying early

When a regular payday falls on a non-banking day, but payment is made on the last working day before the regular payday.

 

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 you can report these payments early in advance of the actual payment date, but we recommend you don’t submit your FPS too early as you might need to correct it if information changes: for example, an employee leaves or there is a change in an employee’s tax code.

Paying late

If you decide to pay your employees on the first working day after the Easter holidays then you should report the payment on your FPS as if it has been paid on the regular payment day/date.

So, for example:

 

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 *

*HMRC recommends you send your payroll submission early in these circumstances, but if you do send your FPS on a later date than the regular payment dates you must select 'Late reporting reason code G'

All other payments you make on regular paydays that fall on banking days and the deductions due must be reported on or before the date of payment to your employees.

There is more information on GOV.UK's page, running payroll.