RTI - client pays before weekend when official pay date falls on weekend

RTI - client pays before weekend when official...

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On HMRC's website https://www.gov.uk/running-payroll/fps-after-payday they cover the scenario where the FPS is filed on a Monday for a payday falling on the weekend (and say that is allowed) - presumably for this scenario they assume physical payment is also made on the payday.

However, I have discovered a client who is making physical payment on the Friday (i.e. in advance) for paydays falling due over the weekend; we happen to file these FPSs on the Friday, so as that is filed on or before the payment date (whether you take that to be Friday or the weekend), we should be OK there.

However, is there any other issue with physical payment being made before the offiicial pay date (by which I mean what the employment contract states - the 28th of each month). The date on the FPS is correct, as I understand HMRC say it should be the date per the employment contract, so there is no incorrect submission.

Replies (5)

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Euan's picture
By Euan MacLennan
21st Jul 2015 18:23

No problem

See the (old) HMRC guidance.

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By stt
21st Jul 2015 20:10

Thanks Euan, that's exactly what I was looking for!

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RLI
By lionofludesch
22nd Jul 2015 08:25

Cash

Does that still apply where the employee gets paid in notes and coins ?

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Euan's picture
By Euan MacLennan
22nd Jul 2015 10:26

Think about it

What does HMRC('s computer system) know?  Four things:

The date on which it receives the FPSThe paydate stated in the FPSWhich days are banking daysThe 3 day easement before penalties are charged

It doesn't know on what day the employees are actually paid or in what way they are paid (apart from employers using the BACS # code).  So, Yes, it still applies to payment in used fivers in the back alley.

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RLI
By lionofludesch
22nd Jul 2015 13:49

News to me

I didn't know that the fivers had to be used.

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