Fixing Payroll Errors and Corrections

# Fixing Payroll Errors and Corrections

Making mistakes in payroll happens, but it's important to know how to correct them properly to avoid problems with your PAYE bill and ensure your employees' records are accurate. This guide explains what to check when something looks wrong, how to submit corrections through your Full Payment Submission, and when to ask HMRC for help.

When Your PAYE Bill Looks Wrong

Each month you must pay HMRC what you owe from running payroll for your employees. If the amount shown in your online account isn't what you expected, there are several things to check before assuming there's an error.

First, make sure you sent your Full Payment Submission (FPS) or Employer Payment Summary (EPS) in time for your account to update. An FPS reports your employees' pay and deductions each time you pay them, while an EPS reports things like statutory pay you're reclaiming.

Check that you:

• Used the date you actually paid your employees on your FPS, not the date you sent the report
• Reported pay and deductions correctly in your FPS
• Reported your EPS correctly, including any statutory pay claims
• Previously paid HMRC the right amount (past incorrect reports can affect your current bill)

Problems With Employees Starting or Leaving

Incorrect reporting of employees starting or leaving can create duplicate payroll records and affect your PAYE bill. Both issues are usually corrected automatically by HMRC. If your PAYE bill is still wrong by the 12th of the next tax month, you can ask HMRC for help.

Correcting Errors in Your FPS or EPS

You might need to correct various types of mistakes in your Full Payment Submission or Employer Payment Summary, including:

• Pay or deductions
• Payment dates
• Start or leaving dates for employees
• Employee personal information
• Reports sent in advance
• National Insurance category letters
• Employee workplace postcodes (if you've claimed National Insurance relief in UK Freeport or Investment Zone special tax sites)
• Amounts in your EPS
• Apprenticeship Levy if you have an annual pay bill over £3 million

You'll only be charged a penalty for a mistake if you didn't take reasonable care or did it deliberately.

Correcting Pay or Deductions

To fix a mistake made in the current tax year (2025/26), update the year-to-date figures in your next regular FPS.

Important: If you're correcting an FPS for a previous payment where the 'payment after leaving (PAL)' box is ticked, do not enter the same amounts in the 'pay in period' and 'pay in year-to-date' fields. This will create a duplicate record for your employee.

For Tax Years Between 6 April 2020 and 5 April 2026

Submit another FPS with the correct year-to-date figures.

If Your Employee Has Left

Include them in your next FPS and correct their year-to-date figures. Use their original 'Date of leaving' and enter the same or a later 'Payment date' than shown on their final FPS.

Correcting Payment Dates

You should always use the actual date you paid your employees in your FPS. If you've sent an FPS with the wrong payment date:

1. Send an additional FPS with the correct payment date

2. Write 'H - correction to earlier submission' in the 'Late reporting reason' field

If you're correcting an FPS for a previous payment where the 'payment after leaving (PAL)' box is ticked, put 0.00 in the 'pay in period' field. The year-to-date entry should stay the same as the previous 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.

If the wrong date was in a different tax month, you must realign your payroll to the correct tax period.

Correcting Employee Start or Leaving Dates

If you entered the wrong start or leaving date for an employee:

• Update your payroll records with the correct date
• Do not report the amendment in your next FPS, as this may create a duplicate record

Correcting Employee Personal Information

If you've made a mistake with an employee's personal details, correct your next FPS. However, do not report updates to more than one personal detail (such as name, date of birth, or gender) in the same FPS. Doing so may duplicate your payroll records and affect your PAYE bill.

If your employee's details change (such as their address or surname), they must tell HMRC straight away, and you need to update your payroll records.

Correcting Reports Sent in Advance

If you've sent FPS reports in advance that need correcting (for example, because an employee leaves unexpectedly):

1. Send another FPS for the tax month the correction relates to

2. Fill in all relevant fields and revise the year-to-date figures if needed

3. Correct any other advance FPS reports affected by the change

Getting Help From HMRC

If you've checked your payroll records and can't find a mistake, or you need help identifying an error, you can ask HMRC for help to correct your employer PAYE bill.

What You'll Need

Before contacting HMRC, gather:

• Your PAYE reference number
• Your Accounts Office reference (if you have one)
• Your Self Assessment or Corporation Tax Unique Taxpayer Reference (UTR)
• The number of employees your business has

You'll also need details from your payroll software for the tax year, including total:

• Income Tax
• Employer and employee National Insurance contributions
• Student loan deductions
• Class 1A National Insurance contributions

Important: Provide the details as they appear in your payroll software, not from your HMRC business tax account.

If you're disputing more than one year, you'll need to submit a separate request for each year.

What Happens Next

When you submit your request, you'll receive an email with a reference number. HMRC will contact you by email within 40 working days with your FPS information and a help card to assist you with fixing your payroll records.

Sources

• Fix problems with running payroll
• Get help to correct an employer PAYE bill

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.