Guide
Correct PAYE errors
How to fix mistakes in your payroll submissions and HMRC records.
Manufacturing & EngineeringConstruction & PropertyRetail & Consumer GoodsTechnology & Digital
UK-wide
Payroll errors happen. Whether you have used the wrong tax code, miscalculated pay, or submitted incorrect information to HMRC, this guide explains how to put things right.
Types of PAYE errors
- Wrong tax code used: Employee over or under-taxed
- Incorrect pay reported: Wrong gross or net pay on FPS
- Missing employee: Employee not included on FPS
- Wrong NI category: Incorrect National Insurance calculated
- Duplicate submission: Same employee reported twice
- Wrong payment date: FPS shows incorrect payday
Correcting errors in the current tax year
For errors discovered in the current tax year:
- Correct your payroll records: Update employee file with correct information
- Submit corrected FPS: Include year-to-date corrected figures
- Within 14 days: Corrections within 14 days of month end counted in that month
- Late reporting reason: Select appropriate reason code (e.g., H - Correction to earlier submission)
- Current year corrections
- Submit additional FPS with corrected year-to-date figures
- Correction window
- 14 days after tax month end to count in same month
- Final deadline
- 19 April following tax year end
- Previous year corrections
- Submit further FPS (not EYU) for 2020/21 onwards
Correcting previous tax years
For tax years 2020/21 onwards, submit a further Full Payment Submission (FPS) with corrected year-to-date figures for the previous year.
Note: The Earlier Year Update (EYU) is no longer used for corrections from 2020/21 onwards.
Employee refunds and underpayments
If employee overpaid tax:
- Refund through payroll in next pay period
- Or employee can claim directly from HMRC after tax year end
If employee underpaid tax:
- Collect underpayment through future pay (with employee agreement)
- HMRC may adjust their tax code to collect
- Maximum collection through code change: £3,000 per year