UK employers: what to check if your PAYE bill is too high or too low
Payroll is a complex, time consuming and ever developing function. With regulation advancements, company developments and employee changes, businesses can find it challenging to maintain compliant and accurate payroll. On occasion, a PAYE bill may not be as expected – it may be unexpectedly high or unexpectedly low. For such cases a brief top level check in areas prone to errors can speed up corrections – continue reading for UK and Ireland payroll specialist recommendations on initial checks.
Initial areas to check:
- Did you send your EPS (Employer Payment Summary) or FPS (Full Payment Submission) in on time for the update to be made?
- On your FPS report, did you use the date that you sent it in or the date you paid your staff?
- Is your FPS accurate (first check changes made on your previous report, e.g. pay and deductions)?
- Is your EPS accurate?
- Was your previous payment to HMRC accurate? HMRC may have made adjustments (to account for a higher or lower past payment) that has created the unexpected value in your recent bill.
- Have you had employees starting or leaving? Are these accurately reported on?
When PAYE bills are not as expected, the above are some of the more common areas prone to errors. This is not a complete list; it’s more of a starting point. If you don’t manage to find the reason for the unexpected PAYE bill value or if you’d like to contact HMRC to correct your PAYE bill, click here for their contact details.
If you find that you made an error in your EPS or FPS, click here to access the gov.uk guide on correcting these submissions.
If you have paid HMRC too little or too much, click here to access gov.uk’s resource for making these corrections (also included here are details on how to claim a refund).
For details on how to correct an error in employee’s pay or deductions click here.
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Here at Paycheck Plus we are fanatical about accuracy. To keep ourselves sharp we actually track the percentage of our calculations that are right first time. Our current average score, taking data from the last 3 years, is 99.99%.
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Paycheck Plus – Payroll Excellence