Payroll operations UK-wide

Correct PAYE errors

How to fix mistakes in your payroll submissions and HMRC records.

Guide summary

Fix PAYE errors as soon as you find them. Correct your payroll records and report the right figures to HMRC. For current year errors, send the FPS within 14 days of the month end. For previous year errors (2020/21 onwards), send a further FPS. Refund overpaid tax through payroll or collect underpaid tax from future pay with your employee's agreement.

  • Correct current year errors and report within 14 days of month end
  • Send a further FPS for previous year errors (2020/21 onwards)
  • Issue corrected P60 to employee if yearly figures change
  • Correct previous year errors up to 6 years after the tax year ends
  • Get employee agreement to collect underpayment from future pay
  • HMRC can collect up to £3,000 per year through tax code adjustment
  • Refund overpaid tax through payroll or the employee claims from HMRC
  • Use further FPS, not Earlier Year Update, for corrections from 2020/21
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Related guides in Tax & Finance

Pay PAYE to HMRC

How and when to pay your PAYE tax and National Insurance to HMRC.

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:

  1. Correct your payroll records - update employee file with correct information
  2. Submit corrected FPS - include year-to-date corrected figures
  3. Within 14 days - corrections within 14 days of month end counted in that month
  4. Late reporting reason - select appropriate reason code (for example, 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 to 2021 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 to 2021 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