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Posted Sat, 15 Oct 2022 21:05:39 GMT by YY Lee
I usually paid the employees on 5th of the following month for the tax month. Now I want to change the payday to 7th of the following month for the tax month. For payroll period of 1st Jan to 31st Jan, can I pay on 7th Feb? What do I need to do about FPS for change of payday. I need to submit EPS about the change because payday now falls into another tax period? Thank you.
Posted Mon, 17 Oct 2022 16:23:25 GMT by HMRC Admin 10
HMRC isnt concerned about when money was earned only when it was paid.
So you would just need to ensure there is a FPS for each tax month.
You would also need to be aware that if you do not pay employees for 1 month we would still need a nil FPS or EPS to report no payments.
It may also result in the employees loosing out on 1 month of National Insurance threshold as they are only being paid 11 months of the year.

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