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Does FPS ned to be filed if employer pays leaving employee

Does FPS ned to be filed if employer pays...

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Do we run a payroll and file an FPS with HMRC just for a leaving employee if this employee is to be paid by the employer on the date of laeving and not the end of the month which is the normal pay date? My understanding is that an FPS must be filed before any payment with HMRC. Our payroll software provider advised that we don't need to file an FPS just for that employee but run payroll as normal at the month-end. Thanks.

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Euan's picture
By Euan MacLennan
08th Jan 2015 10:50

Happens all the time

Strictly speaking, the answer is Yes - you should file an FPS on or before the date of payment to the leaver.  However, this might be allowed as an ad hoc payment for which no FPS is required.

Practically speaking, the answer is No.  Just make sure that the date on the leaver's payslip is the end of the month and report the payment in the FPS on or (just) before the end of month.  HMRC would only know about this technical omission if they visit your client and actually find the early payment during a PAYE inspection.

Fortunately, most of our payroll clients have been trained to tell leavers that they can have their final payslip and form P45 when they leave, but their payment will not go through until the usual payday.

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By daveforbes
08th Jan 2015 12:04

BACS originator

If you were a large employer using direct bacs payments then the mismatch in dates would be detected via the rti bacs hash code that is transmitted both as part of the FPS and the BACS payment.

http://www.hmrc.gov.uk/softwaredevelopers/rti/developerfaqs.htm

Q1.13: Will HMRC be publishing what happens where the hash does not match the one created by Vocalink?

A: It will feed into HMRC and DWP risk assessment procedures used to target education and compliance activities.

Q1.14: What is the submission 'window' between making a Bacs payment and making an RTI submission?

A: RTI submissions should be made on or before the time of payment. Where the payment is made by Bacs, the payment will be for a given settlement date and the RTI submission should be submitted by that date.

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