188体育

You can correct a mistake with an employee鈥檚 pay or deductions by updating the year-to-date figures in your next regular Full Payment Submission (FPS).

You can also correct it by sending an additional FPS before your next regular FPS is due. You need to:

• update the 鈥榯his pay period鈥� figures with the difference between what you originally reported and the correct figures
• correct the year-to-date figures
• put the same payment date as the original FPS
• put the same pay frequency as the original FPS
• put 鈥楬 - Correction to earlier submission鈥� in the 鈥楲ate reporting reason鈥� field

Correct a pension death benefit or flexibility payment

If you鈥檙e a pension administrator who needs to correct a flexibility payment or death benefit payment, you must:

• select the 鈥榩ension flexibility payment鈥� or 鈥榩ension death benefit payment鈥� indicator
• update the 鈥榩ensions drawdown taxable payment鈥� or 鈥檖ensions drawdown non-taxable payment鈥� fields (or both) with the difference between what you originally reported and the correct figures

If you underpaid your employee

Pay your employee the amount you underpaid them. On or before the day of this payment, send an additional FPS with:

• the difference between what you originally reported and the correct amount in the 鈥業n this pay period鈥� field
• updated year-to-date figures
• 鈥楬 - Correction to earlier submission鈥� in the 鈥楲ate reporting reason鈥� field

Correct an employee鈥檚 National Insurance deductions

What you need to do depends on when you made the mistake.

If the mistake was in this tax year

Repay or deduct the balance from your employee. Update the year-to-date figures to the corrected amount in your next regular FPS or send an additional FPS.

If you deducted too little, you cannot recover more than the employee鈥檚 National Insurance contribution due that month.

If the mistake was in the tax years between 6 April 2020 and 5 April 2024

Send an FPS with the amount you should have deducted.

You鈥檒l need to write to HMRC if both the following apply:

• the difference is negative because you deducted or reported too much National Insurance
• you still owe your employee a refund, for example because they鈥檝e left your employment

In the letter you鈥檒l need to include:

• the reference 鈥極verpaid NI contributions鈥�
• your employee鈥檚 name, date of birth and National Insurance number
• why you overpaid National Insurance contributions
• which tax years you overpaid in
• how much National Insurance you overpaid
• why you are unable to make the payment to the employee

For a claim for one employee, send the letter to:

For a claim for more than one employee, send the letter to:

If the mistake was in the tax years between 6 April 2018 and 5 April 2020

Send an FPS with the correct year-to-date National Insurance if:

• your payroll software will let you submit an FPS
• you can pay any National Insurance refunds you owe

If you cannot use an FPS, send an Earlier Year Update (EYU) with the difference between:

• the amount of National Insurance you originally deducted
• the correct amount you should have deducted

If the difference is negative (because you deducted or reported too much National Insurance), you also need to set the 鈥�NIC refund indicator鈥� to:

• 鈥榊es鈥� if you鈥檝e refunded your employee or no refund was due
• 鈥楴o鈥� if you still owe your employee a refund (for example because they鈥檝e left your employment)

If there鈥檚 an underpayment

If you deducted too little National Insurance, pay HMRC the underpayment straight away. You can then recover the amount from your employee by making deductions from their pay.

You cannot recover more than the amount of National Insurance the employee owes in a month (so the employee pays no more than double their normal contribution). Carry over the difference to later months - you can only make deductions in the tax year when you made the mistake and the year after.

Correct an employee鈥檚 student loan repayments

What you need to do depends on when you made the mistake.

If the mistake was in this tax year

Repay or deduct the balance from your employee. Update the year-to-date figures to the corrected amount in your next regular FPS or send an additional FPS.

If you deducted too little, you cannot recover more than the student loan repayment due that month.

If the mistake was in previous tax years

You do not need to take any action if either of the following apply:

• you鈥檝e deducted too little
• you鈥檝e already submitted your final FPS for that year

Your employee should contact the Student Loans Company to find out how it affects them.

If you have deducted too much, and you have not sent your final FPS for that year, you can repay your employee. Send an FPS with the correct 鈥榮tudent loan repayment year to date鈥� figure as of 5 April for the previous tax year.