Fix problems with running payroll
You paid your employee the wrong amount or made incorrect deductions
You can correct a mistake with an employee바카라 사이트™s 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 바카라 사이트˜this pay period바카라 사이트™ 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 바카라 사이트˜H - Correction to earlier submission바카라 사이트™ in the 바카라 사이트˜Late reporting reason바카라 사이트™ field
Correct a pension death benefit or flexibility payment
If you바카라 사이트™re a pension administrator who needs to correct a flexibility payment or death benefit payment, you must:
- select the 바카라 사이트˜pension flexibility payment바카라 사이트™ or 바카라 사이트˜pension death benefit payment바카라 사이트™ indicator
- update the 바카라 사이트˜pensions drawdown taxable payment바카라 사이트™ or 바카라 사이트™pensions drawdown non-taxable payment바카라 사이트™ 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 바카라 사이트˜In this pay period바카라 사이트™ field
- updated year-to-date figures
- 바카라 사이트˜H - Correction to earlier submission바카라 사이트™ in the 바카라 사이트˜Late reporting reason바카라 사이트™ field
Correct an employee바카라 사이트™s 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 employee바카라 사이트™s National Insurance contribution due that month.
Example:
You deducted £100 too little in January. In February, your software calculates an £80 National Insurance deduction, which means you can recover up to £80 towards the underpayment that month (a £160 deduction in total).
Recover the remaining £20 in another month.
If the mistake was in the tax years between 6 April 2020 and 5 April 2025
Send an FPS with the amount you should have deducted.
You바카라 사이트™ll 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 they바카라 사이트™ve left your employment
In the letter you바카라 사이트™ll need to include:
- the reference 바카라 사이트˜Overpaid NI contributions바카라 사이트™
- your employee바카라 사이트™s 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:
HM Revenue and Customs
National Insurance Contributions and Employer Office
BX9 1AN
For a claim for more than one employee, send the letter to:
HM Revenue and Customs
National Insurance Contributions and Employer Office
BX9 1BX
If the mistake was in the tax year between 6 April 2019 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 바카라 사이트˜NIC refund indicator바카라 사이트™ to:
- 바카라 사이트˜Yes바카라 사이트™ if you바카라 사이트™ve refunded your employee or no refund was due
- 바카라 사이트˜No바카라 사이트™ if you still owe your employee a refund (for example because they바카라 사이트™ve left your employment)
If there바카라 사이트™s 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 employee바카라 사이트™s 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.
Example:
You deducted £50 too little in June. In July, your software calculates a £30 student loan deduction, which means you can recover up to £30 towards the underpayment that month (a £60 deduction in total).
Recover the remaining £20 in another month.
If the mistake was in previous tax years
You do not need to take any action if either of the following apply:
- you바카라 사이트™ve deducted too little
- you바카라 사이트™ve 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 바카라 사이트˜student loan repayment year to date바카라 사이트™ figure as of 5 April for the previous tax year.