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Posted Tue, 30 Aug 2022 08:52:11 GMT by INDIGOSUN
Please can you assist. We have closed off our previous months payroll submitting an FPS. We were then notified subsequently that three employees had left our employment. We processed the leaving dates of the employees and then submitted an FPS Adjustment to notify you of the change. Only one employee had a tax charge and the FPS Adjustment file submitted their full details as previously submitted but with the leaving date added. The tax charge is now showing as due which is incorrect. Please can you advise how the FPS adjustment works. Am I correct in thinking that the FPS Adjustment, as it implies, for the tax or NI add to or subtract the previously submitted amount on the FPS? Therefore, in this case the amount has effectively been doubled as it was reported on the FPS and the FPS adjustment.

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Posted Wed, 31 Aug 2022 12:49:32 GMT by HMRC Admin 10
An FPS adjustment is a correction submission to fix the previous payroll information declared.
Unfortunately, we are unable to give advice on how this is done on third party payroll softwares, however if you are using Basic PAYE Tools, you can find guidance on how to complete the adjustment here:
Basic PAYE Tools user guide
If you only updated the leaving date, you did not need to send in an FPS adjustment - this may have been the cause of the increased liabilities.
You will need to complete another FPS adjustment to lower the figures again.
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