As an employer, it’s crucial to report payroll information to HM Revenue and Customs (HMRC) accurately and on time. The Full Payment Submission (FPS) is a key part of the PAYE reporting process, used to inform HMRC about payments made to your employees and any deductions taken from their pay.
In this article, we’ll break down what an FPS is, when and how to submit it, and what to do if something changes after submission.
What Is a Full Payment Submission (FPS)?
A Full Payment Submission is sent to HMRC every time you pay your employees. It details:
- Payments made
- Tax and National Insurance deductions
- Employee details
Even employees earning below the Lower Earnings Limit (currently £96 per week) must be included in your FPS.
When to Submit an FPS
The FPS must be submitted on or before the date you pay your employees, regardless of whether you pay HMRC monthly or quarterly. Importantly, you should report the usual payment date, even if you pay early—such as ahead of a bank holiday.
You may submit the FPS early if needed (e.g. if payroll staff are going on holiday), but don’t report too far in advance. Changes like an updated tax code or an employee leaving may require a corrected submission.
Also, note that you cannot file reports for the new tax year until March.
Late Reporting
There are limited exceptions when HMRC allows an FPS to be submitted after the actual payday. Be sure to understand these exceptions to avoid potential penalties.
How to Submit the FPS
You’ll use payroll software to submit the FPS. Make sure your software includes:
- Your PAYE reference
- Your Accounts Office reference (provided when you registered with HMRC)
Most payroll systems guide you through the required steps. Your FPS should include:
- Employer and employee information
- Pay and deductions
- National Insurance details
If needed, you can split submissions—for example, by submitting separate batches for employees and directors. Special rules apply if an employee holds multiple positions within your business.
After Submission
Following submission, you can:
- From the 10th of the next tax month: View what you owe HMRC in your online account.
- By the 19th: Submit an Employer Payment Summary (EPS) to claim reductions (e.g. for statutory pay).
- By the 22nd: Make your payment to HMRC (or by the 19th if paying by post).
If you need to make an additional payment to an employee, an extra FPS can be sent after payday as long as it’s done before your next regular report (and your software supports it).
What If You Make a Mistake?
If you discover an error in your FPS, submit a corrected FPS as soon as possible. Prompt correction ensures your records stay accurate and up to date.
Additional Reporting Requirements
In certain situations, more details must be included in the FPS:
- When adding a new employee
- When an employee leaves
- For the final report of the tax year
- When starting workplace pension contributions
Conclusion
Submitting your FPS on time and with accurate information is essential to maintaining compliance with HMRC. While the process may seem routine, the details matter—particularly around timing, corrections, and exceptions. Make sure you’re familiar with your payroll software’s capabilities and keep up to date with HMRC guidance to avoid common pitfalls. Get in touch with AccelUS today!