How to Fix Errors in FPS Payroll Submission UK

Ensuring accuracy in your Full Payment Submission (FPS) is a critical part of UK payroll compliance. Employers must report the actual date employees are paid—not the day the payroll is processed—when submitting an FPS to HMRC. However, mistakes happen. Whether the payroll date is incorrect, or a pay period is missed entirely, these errors can lead to incorrect tax or National Insurance allocations.

Understanding how to correct FPS payroll submission errors is essential for staying compliant, avoiding penalties, and maintaining employee trust. This guide breaks down how and when to fix FPS errors, how to handle payroll software limitations, and why proper communication with employees matters.

Realigning FPS Dates

The most common error in FPS submissions involves reporting the wrong payment date. For example, if payroll was processed on October 4 but employees were paid on October 7, using the 4th as the payment date would cause HMRC to allocate that pay to the wrong tax period. This could result in employees being taxed incorrectly. If you realise this mistake, the action you take will depend on when the next FPS is due.

If the next FPS falls within the same tax month, you should submit a corrected FPS with the accurate date before or on the employee’s actual payday. Although this may temporarily increase the employee's tax for that month, it ensures HMRC has the correct information. If your next FPS is due in a new tax period, you don't need to submit a correction immediately; just ensure your next submission reflects the right pay date and year-to-date figures. In scenarios where no FPS is scheduled for the affected period—such as long gaps between pay dates—it becomes even more important to ensure National Insurance data remains accurate.

Handling Missed Pay Periods

Sometimes, you may not pay employees during a particular tax month, either due to pay schedule changes or other delays. In these cases, you won’t need to submit an FPS for that period. However, doing nothing at all can lead to reporting gaps. Even if no payments are made, HMRC still expects an Employer Payment Summary (EPS) to indicate no pay occurred.

More importantly, even when skipping an FPS, employers must ensure that National Insurance contributions remain correctly recorded. This can be done through a separate FPS specifically for National Insurance adjustments. The figures should reflect zero payments for that period while maintaining accurate year-to-date totals. Skipping this step could result in discrepancies in employees’ records, leading to confusion during tax reconciliation or when P60s are issued.

Correcting National Insurance Data

When a payroll date error or skipped period affects National Insurance contributions, sending an additional FPS becomes necessary. This submission should only include revised National Insurance figures and must avoid duplicating payment data. Typically, employers will input zero for the current period while ensuring year-to-date earnings and contribution totals are accurate. If a pay run was missed but employees still earned during that time, HMRC expects those earnings and contributions to be reflected appropriately.

If no FPS is submitted at all for a tax month, a corresponding EPS is essential to notify HMRC of the omission. Without it, the system may assume non-compliance or incomplete records. These corrections help prevent long-term issues for both employers and employees, especially when reconciling annual figures or submitting end-of-year returns.

Working Around Software Limitations

Not all payroll software can accommodate mid-year corrections or previous FPS amendments. If you discover that your system doesn't support these updates, you may need to submit an Earlier Year Update (EYU) at the end of the tax year. This update allows you to correct errors from earlier in the year, but it should only include the data directly affected by the mistake, not the entire payroll summary.

Alternatively, HMRC’s free Basic PAYE Tools software can be used to amend FPS submissions or file EYUs manually. This tool is particularly useful for small businesses or those whose commercial payroll software lacks flexibility. Whether you're using your software or PAYE Tools, the key is ensuring all amendments align with HMRC’s expectations and are made in a timely fashion to avoid penalties or compliance issues.

Communicating with Employees

Errors in FPS payroll submission UK can also create confusion for employees. If a payment date is reported incorrectly and then corrected, employees may notice tax adjustments, P60 discrepancies, or unexpected changes in their National Insurance records. In such cases, transparency becomes vital.

Employers should inform affected employees about the correction, explaining that any unusual deductions or record inconsistencies are temporary and will be resolved. Offering written documentation that outlines the correction and what it means can also help reassure employees. Providing clarity around tax and pay adjustments shows that the employer is proactive and supports trust in the payroll process.

How EOR Services UK Can Help

Navigating payroll corrections, especially when it involves FPS submissions and HMRC compliance, can be daunting. This is where EOR Services UK steps in. With a dedicated team of CIPD-qualified payroll and HR professionals, we handle every detail of payroll management—from FPS submissions to National Insurance adjustments. We ensure your submissions are timely, accurate, and fully compliant, even when complex corrections are required.

If your current software is limited or you’re unsure how to proceed, we can guide you through the process using tools like Basic PAYE Tools or act on your behalf for direct HMRC communications. Our support doesn’t stop at submissions—we assist with year-end reconciliations, employee communications, and provide advisory services for businesses adjusting pay schedules or facing regulatory changes. With our help, you can correct payroll errors confidently and avoid disruptions for both your business and your staff.

Conclusion

Maintaining accuracy in FPS payroll submission UK is more than a regulatory requirement—it’s a responsibility to your employees and a pillar of financial integrity. Whether the error stems from a misreported pay date, a skipped tax period, or software limitations, prompt and correct action is crucial. By understanding when and how to make these corrections, employers can remain compliant and reduce the risk of penalties or year-end confusion.

Communicating clearly with employees and using the right tools or services further ensures that payroll remains both accurate and transparent. With expert guidance from partners like EOR Services UK, managing FPS errors becomes a streamlined and stress-free process.