From April 2019, HMRC have introduced a simplified process to submit payroll corrections for previous Tax Years. Real Time Information (RTI) Full Payment Submission (FPS) can now be used to report revised Year to Date (YTD) payroll information after the current deadline of 19 April 2019 instead of submitting an Earlier Year Update (EYU).

Not all software supports this process currently. You should check with your provider to see whether or not your product is one of them. If your software supports this process it can be used from 20 April 2019, if not, you should still use the EYU process.

If the trial is successful, all payroll software providers should support this change from April 2020 and EYU will no longer be used for Tax Year 2019/20 and beyond. If this is the case, HMRC’s Basic PAYE Tools software will also be updated to support the new process.

If several corrections are made after 20 April 2019 for Tax Year 2018/19, the same submission type should be used. For example, if a correction is made using the EYU process then this will need to be used for all other changes for the same Tax Year.

To summarise:

  • Amendments to the Tax Year ending 05 April 2019 from 20 April 2019 – an EYU or FPS will be accepted
  • Amendments to the Tax Year ending 05 April 2020 (and future years) from 20 April 2020 – will be made by the submission of an FPS
  • Amendments to Tax Years ending 05 April 2018 and earlier – will be made by the submission of an EYU

For help with your payroll queries, please contact our Payroll Bureau team.