Paying staff early at Christmas 2026? Check the date you report to HMRC
News review for 22 October 2026. HMRC’s 21 October Employer Bulletin reminds businesses about reporting wages paid early over Christmas. This is an existing arrangement to build into your December payroll plan, rather than a newly introduced tax rule.
The bank payment and FPS dates can differ
Under the Christmas early-payment arrangement, report the normal or contractual payday on the Full Payment Submission. For example, if the normal payday is 31 December but you pay on 18 December because of the festive closure, the FPS payment date remains 31 December. Submit the FPS on or before that normal payday.
Why does the date matter to employees?
Accurate reporting helps protect the assessment of income-related benefits such as Universal Credit. Paying early can affect how earnings are taken into account. Explain the holiday payment arrangements to employees so they understand that an earlier bank transfer does not change the usual payroll schedule.
Agree a cut-off for payroll information
An FPS can be sent before the regular payday, but reporting too early may mean correcting it when an employee’s circumstances change. HMRC advises correcting errors promptly. The normal reporting obligation is on or before payday; the Christmas easement should not be treated as permission to delay reports for unrelated early payments.
Keep PAYE payment planning separate
Paying staff and paying HMRC are separate steps. Monthly electronic PAYE bills are normally due by the 22nd of the next tax month. An early Christmas salary payment does not itself extend the employer’s HMRC payment deadline.
ZipTax’s practical preparation checklist
Put the usual payday, planned bank transfer, timesheet deadline and responsible person in one schedule. Confirm holiday information, bonuses and employee changes separately. Check who will approve bank payments if the business owner is away.
If an accountant processes your payroll, agree the plan before the business closes for the holidays. A short review now is easier than trying to assemble missing information while staff are on leave. Contact ZipTax to discuss your December payroll and HMRC reporting. Information checked on 22 October 2026.
