Making a List, Checking Pay Dates Twice

Christmas may come early for your employees this year, but if you do bring their wages forward for the festive break, their usual payday is still the date you should report on your Full Payment Submission (FPS)

For example, suppose your employees’ contractual payday is Thursday 31 December 2026, but you pay them on Friday 18 December before closing for Christmas. Although your employees receive their wages on the 18th, their December payday for HMRC purposes is still 31 December. Your FPS should show that date and reach HMRC on or before 31 December.

This matters for employees who receive Universal Credit. Reporting the earlier date can make it appear that an employee received two months’ wages in one assessment period. This could reduce their Universal Credit payment and leave them short over Christmas.

Remember, reporting your regular payday is for life, not just for Christmas!

Once the tinsel comes down, the same rule applies when payday falls on a weekend or bank holiday. Take January 2027. If you pay your employees on the last calendar day of each month, their January payday falls on Sunday 31 January. You may pay them on Friday 29 January,

the last working day before the weekend, but 31 January is still the payment date to report on your FPS

If you have any questions about your Christmas pay dates, contact our Payroll Team on 01254 688110.