Questions and Answers
Can I pay my employees early at Christmas?
I am going to pay my employees early this year, so they have their wages before Christmas instead of waiting until the end of the month. Do I need to consider anything?
Last updated 10 Dec 2024 | First published 10 Dec 2024
By Helen Wood, CA 1 min read
Payroll
If you choose to pay your employees early at Christmas, you should be aware of a special easement to your PAYE reporting obligations , which HMRC reminded employers of recently in the October 2025 Employer Bulletin.
HMRC is aware that when employees are paid early this can cause problems for those who make Universal Credit claims because reporting the one-off early payday as the payment date can impact current and future benefit entitlements.
HMRC has a permanent easement in place specifically to allow employers to pay employees early at Christmas. Employers can report their normal (or contractual) payday as the payment date on the Full Payment Submission (FPS). This ensures you protect your employees' benefits positions. Employers must make sure that the FPS is submitted on or before the normal payment date.
For example, if you pay employees on 19th December 2025 instead of 31st December 2025, you will report the payment date as 31st December 2025, and your FPS must be sent on or before 31st December 2025.
This is only an easement of the rules for the Christmas period, and the normal Real Time Information rules still apply at all other times of the year.
Last updated 10 Dec 2024 | First published 10 Dec 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Helen Wood, CA
Helen is a qualified chartered accountant (CA) and joined TaxAssist in 2025 following three years as a freelance content writer for clients in the tax and accounting publishing sector. Prior to this, She spent 17 years at Big Four and Top 10 accountancy firms. Helen writes clear and helpful articles on tax and accounting for businesses and individuals.
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