Remember: submitting your FPS with your regular payment date should be applied for life, not just for Christmas!
Regardless of whether you intend to pay your employees early at Christmas, you must still report your payroll with the normal payment date, even if the usual pay date falls on a weekend or bank holiday.
For example, if you pay on Friday, December 20th, 2024, but the normal/contractual payment date is Friday, December 31st, 2024, you should still report the payment date on the FPS as 31st December and ensure the submission is sent on or before 31st December.
The rationale behind this is to protect your employee’s eligibility for Universal Credit, as the assessment period for Universal Credit is determined upon the dates submitted on the FPS.
Universal Credits are a social security payment, provided to those on low earnings or out of work to support them with daily living costs.
If it looks as though someone has received two payments in one assessment period, it may affect their eligibility for Universal Credits and therefore leave them struggling financially.
Although we have focused on the Christmas pay period, ensuring you submit your FPS on the regular pay date should be applied throughout the remainder of the year.
Where an employee is normally paid on the 25th of each month but is paid on the 24th January 2025 (as the 25th is a Saturday, which is a non-banking day) the employee must have 25th January reported as the payment date.