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Your PAYE bill might be wrong if you made a mistake in your Full Payment Submission (FPS) or Employer Payment Summary (EPS). You might have to correct:

• pay or deductions
• payment dates
• start or leaving dates for your employee
• employee information
• reports sent in advance
• National Insurance category letters
• amounts in your EPS
• the Apprenticeship Levy you owe (starting from April 2017) if you, or employers you鈥檙e connected to, have an annual pay bill of more than 拢3 million

If you鈥檝e reported the wrong pay or deductions

To correct a mistake made in the current tax year, update the year-to-date figures in your next regular FPS.

If you鈥檙e correcting an聽FPS聽for a previous payment and the 鈥榩ayment after leaving (PAL)鈥� box is ticked do not enter the same amounts in the 鈥榩ay in period鈥� and 鈥榩ay in year-to-date鈥� fields. Doing this will create a duplicate record for your employee.

The rules are different if you find a mistake in your final FPS of the year.

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

Submit another FPS with the correct year to date figures.

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

You can either submit:

• a further FPS with the correct year to date figures
• an Earlier Year Update (EYU) showing the difference between what you originally reported and the correct figure

You can only use an EYU for tax years when you were reporting online in real time.

If your payroll software cannot send an EYU, you can use HMRC鈥檚 Basic PAYE Tools.

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:

• 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 your payroll software cannot do this, contact your software provider.

If your employee has stopped working for you

Include them in your next FPS and correct their year-to-date figures. Include their original 鈥楧ate of leaving鈥� and put the same or a later 鈥楶ayment date鈥� than the one shown on their final FPS.

Correct the payment date in your FPS

You should use the date you paid your employees in your FPS.

Send an additional FPS with the correct payment date if you鈥檝e sent one with the wrong payment date. Write 鈥楬 - correction to earlier submission鈥� in the 鈥楲ate reporting reason鈥� field.

If you鈥檙e correcting an聽FPS聽for a previous payment and the 鈥榩ayment after leaving (PAL)鈥� box is ticked, do not enter the same amounts in the 鈥榩ay in period鈥� and 鈥榩ay in year-to-date鈥� fields. Doing this will create a duplicate record for your employee.

You need to put 0.00 in the 鈥榩ay in period鈥� field. The year-to-date entry should stay the same for the previous聽FPS.

Send your corrected FPS by the 19th of the tax month after you sent your original FPS. HMRC will apply the correction to the right month.

Correct an employee鈥檚 start or leaving date

Update your payroll records with the correct date if you put the wrong start or leaving date for an employee in your FPS.

Do not report the amendment in your next FPS as this may create a duplicate record for the employee.

Correct your employee鈥檚 personal information

Correct your next FPS if you鈥檝e made a mistake with your employee鈥檚 personal details.

Do not report updates to more than one of your employee鈥檚 personal details (for example their name, date of birth or gender) in the same FPS. Your payroll records may be duplicated if you do, and your PAYE bill might be wrong.

If your employee鈥檚 details (for example their address or surname) change:

• they must tell HMRC straight away
• you need to update your payroll records

Correct FPS reports sent in advance

If you鈥檝e sent FPS reports in advance that need to be corrected (for example because an employee leaves), you should:

• send another FPS for the tax month the correction relates to, making sure you fill in all relevant fields and revising the year-to-date figures if needed

• correct any other FPS reports you sent in advance that are affected by the change

Correct an employee鈥檚 National Insurance category letter

How you do this depends on why the category letter changed, and in which tax year.

You鈥檝e used the wrong category letter in the current tax year

Report the mistake in your next FPS.

1. Add the category letter you鈥檝e used incorrectly.

2. Put 鈥�0鈥� in all National Insurance fields for this category letter except 鈥楨mployee鈥檚 NICs this payment鈥�, and enter the amount you have repaid or recovered here, for example put -拢300 if you鈥檙e repaying an employee鈥檚 overpayment of 拢300.

3. Add the correct category letter, and enter the correct year-to-date National Insurance for this category letter.

4. Put 鈥�0鈥� in all National Insurance fields for the incorrect category letter for the rest of the tax year - you do not need to do this if the category should never have been used.

Your employee鈥檚 category letter changed during the tax year

In your next FPS:

1. Continue to report year-to-date information for the old category.

2. Put 鈥�0鈥� in all 鈥業n this pay period鈥� fields for this category, and use the 鈥楨mployee鈥檚 NICs this payment鈥� field to adjust any underpayment or overpayment of National Insurance.

3. Add the correct category letter, and enter the correct year-to-date National Insurance for this category letter.

You鈥檝e used the wrong category letter in the tax years between 6 April 2021 and 5 April 2024

Send an additional FPS with the correct category letter and correct year-to-date National Insurance for this category letter.

If the mistake was in the 2020 to 2021 tax year or earlier

Send an EYU with:

• negative amounts in all the National Insurance year-to-date fields in the incorrect category letter, to reduce the employee鈥檚 National Insurance to zero
• the correct category letter and correct year-to-date National Insurance

If you鈥檙e correcting a mistake in the 2019 to 2020 or 2020 to 2021 tax years, you may be able to send an FPS instead - use your payroll software to check. Send it with the correct category letter and correct year-to-date National Insurance.

If the mistake caused an overpayment or underpayment

You must correct your employee鈥檚 National Insurance deductions if they paid too little or too much because they were on the wrong category letter.

Correct an EPS

To correct a mistake in the current tax year, send an EPS with the correct year-to-date figures.

For previous tax years, send an EPS with the correct year-to-date figures for the tax year where you made the mistake.