Payroll compliance – what is Full Payment Submission?
Running payroll accurately is an essential responsibility for every employer. One of the most important payroll reporting obligations is submitting a Full Payment Submission (FPS) to HMRC each time employees are paid.
Submitting an FPS correctly and on time helps ensure your payroll records remain accurate, employees are taxed correctly, and your business stays compliant with HMRC’s Real Time Information (RTI) requirements. Missing deadlines or submitting incorrect information can result in unnecessary administration and potential penalties.
What is a full payment submission?
A Full Payment Submission (FPS) is the payroll report employers send to HMRC every time they pay their employees. Using HMRC-recognised payroll software, an FPS reports:
• Employee pay
• Income Tax deductions
• National Insurance contributions
• Student loan and postgraduate loan deductions (where applicable)
• Pension contributions
• Other statutory payroll information
HMRC uses this information to maintain up-to-date payroll records and calculate the amount of tax and National Insurance your business owes.
When should an FPS be submitted?
An FPS must be submitted on or before your employees’ payday, regardless of whether you pay HMRC monthly or quarterly.
The submission should include every employee you pay, even if they earn less than £96 per week.
If employees are paid early because of a Bank Holiday or another reason, employers should still report the employee’s normal payday, rather than the earlier payment date.
Payroll reports can be submitted in advance if necessary, for example when payroll staff are on annual leave. However, employers should avoid filing too early, as payroll information can change before payday. This may include:
• Employees leaving the business
• New starters joining
• Changes to tax codes
• Amendments to employee pay
Where information changes after submission, a corrected FPS should be sent as soon as possible.
What information must be included?
Each FPS must contain accurate payroll information, including:
• Employer details
• Employee personal information
• Gross pay and taxable pay
• Income Tax deductions
• National Insurance contributions
• Statutory payments where applicable
• Pension information where required
Submitting complete and accurate information helps reduce the risk of payroll errors and ensures HMRC records remain up to date.
Understanding your payroll deadlines
After an FPS has been submitted, employers can view the amount of PAYE and National Insurance due through their HMRC online account from the 10th of the following tax month.
If you need to claim reductions, such as statutory maternity, paternity or sick pay, an Employer Payment Summary (EPS) should normally be submitted by the 19th of the month.
Payment to HMRC is generally due by the 22nd of the month if paying electronically, or by the 19th if paying by post.
Meeting these deadlines helps avoid interest charges and potential penalties.
Keeping payroll compliant
Payroll reporting extends beyond simply paying employees each month. Additional information may need to be reported when:
• A new employee joins your business
• An employee leaves
• You submit your final payroll report for the tax year
• An employee starts contributing to a workplace pension
Regular payroll reviews and robust processes can help ensure reporting remains accurate and compliant throughout the year.
How Moore South can help
Managing payroll obligations can become increasingly complex as your business grows. Ensuring Full Payment Submissions are accurate, submitted on time and supported by the correct payroll processes helps minimise compliance risks and reduces the administrative burden on your business.
At Moore South, our payroll specialists provide reliable payroll services, Real Time Information reporting support and ongoing advice to help employers meet their HMRC obligations with confidence.
If you would like support with payroll processing, HMRC reporting or wider payroll compliance, please get in touch with our team.