Monthly PAYE compliance at a glance

This checklist helps you stay on top of your PAYE obligations throughout the year. Bookmark this page and review it each pay period to ensure you do not miss any deadlines.

On or before each payday

These tasks must be completed every time you pay employees:

Submit Full Payment Submission (FPS)

Report pay and deductions to HMRC on or before payday. Late submissions may incur penalties.

FPS essentials

Your FPS tells HMRC about each employee's pay and deductions for the period.

A Full Payment Submission (FPS) is the main RTI report that employers must submit to HMRC on or before each payday. It reports all payments made to employees and the deductions taken.

When to submit: On or before each payday (every time you pay employees)
Late submission easement: Within 3 days of payday accepted without penalty (but regular late filing may be challenged)
Year-end deadline: Final FPS must be submitted by 19 April following tax year end
Early submission window: Can submit FPS for next tax year from 6 March
Correction window: 14 days after end of tax month to correct errors within same month

Information included in FPS

Employer details: HMRC office number, PAYE reference, Accounts Office reference
Employee details: Name, NI number, tax code, date of birth
Payment details: Gross pay, tax deducted, NI contributions (employee and employer)
Year-to-date figures: Taxable pay to date, total tax to date
Student loan deductions: If applicable, plan type and amount
Statutory payments: SSP, SMP, SPP amounts paid
Starter/leaver information: New employee details or leaving date

Final FPS for tax year

When submitting your last FPS for the tax year (on or before 5 April), you must indicate it is your Final Submission. This replaces the old P35 annual return.

Running payroll - reporting to HMRC (opens in a new tab)

Monthly tasks (by 19th)

Complete these by the 19th of the month following each tax month:

gov.uk

Submit Employer Payment Summary (EPS) if needed (opens in a new tab)

Required if claiming statutory pay recovery, Employment Allowance, or reporting no employees paid. Deadline: 19th of month.

When to submit EPS

Not every employer needs to submit an EPS each month - only if you have claims or adjustments.

An Employer Payment Summary (EPS) is submitted in addition to or instead of an FPS to report specific payroll adjustments to HMRC. You submit it monthly or when claiming reductions.

Submission deadline: By 19th of the month following the tax month
When balance updated: If submitted between 20th and 5th, balance updated by 12th of next month
Required for no payments: Submit EPS instead of FPS if no employees paid in a tax month
Period of inactivity: Can notify HMRC of 1-12 months with no expected payments

When to submit an EPS

Claiming statutory payment recovery: SMP, SPP, SAP, ShPP, SSP advances
Claiming Employment Allowance: Annual claim for up to £10,500 NI reduction
CIS deductions suffered: Construction Industry Scheme deductions to offset
No employees paid: Submit EPS instead of FPS for months with no payments
Apprenticeship Levy: Report levy liability for large employers
Scheme ceased: Notify HMRC you are closing your PAYE scheme

Consequences of not submitting EPS

If you do not submit an EPS when no payments are made, HMRC may:

Estimate your PAYE bill based on previous submissions
Send you a payment demand for the estimated amount
Charge late payment penalties on the estimated bill

Running payroll - EPS (opens in a new tab)

Monthly payment (by 22nd)

Pay your PAYE bill to HMRC by the 22nd (electronic) or 19th (cheque):

Pay PAYE to HMRC

Electronic payment deadline: 22nd of month. Cheque deadline: 19th of month. Late payment incurs penalties and interest.

Payment deadlines

Missing payment deadlines triggers automatic penalties and interest charges.

Employers must pay PAYE tax, National Insurance contributions, student loan deductions, and CIS deductions to HMRC by specific monthly or quarterly deadlines.

Electronic payment deadline: 22nd of the month following the tax month
Cheque payment deadline: 19th of the month following the tax month
Quarterly payment option: Available if average monthly PAYE is under £1,500
Quarterly deadlines (electronic): 22 July, 22 October, 22 January, 22 April
Class 1A NIC deadline: 22 July (electronic) or 19 July (cheque) - for benefits in kind
Class 1B NIC deadline: 22 October (electronic) or 19 October (cheque) - for PSAs

What to pay

Your monthly or quarterly PAYE payment includes:

Income tax: Tax deducted from employee wages
Employee NI: Class 1 employee contributions
Employer NI: Class 1 employer contributions
Student loan deductions: Amounts deducted from employee pay
Less statutory payment recovery: SMP, SPP, etc. you can reclaim
Less Employment Allowance: If eligible and claimed

Payment methods

Direct Debit: Set up variable DD to pay automatically by 22nd
Online banking: Same-day or next-day payments accepted
CHAPS: Same-day transfer (may incur bank fees)
Bacs: Takes 3 working days - plan accordingly
Cheque: Must reach HMRC by 19th (allow postal time)

Pay employers' PAYE (opens in a new tab)

Quarterly payment option

If your average monthly PAYE is under £1,500, you may pay quarterly instead:

Quarter 1 (Apr-Jun): Pay by 22 July
Quarter 2 (Jul-Sep): Pay by 22 October
Quarter 3 (Oct-Dec): Pay by 22 January
Quarter 4 (Jan-Mar): Pay by 22 April

Annual tasks

Key deadlines throughout the tax year:

PAYE year-end tasks

Final FPS by 19 April, P60s by 31 May, P11D by 6 July, Class 1A NIC by 22 July

P60 requirements

Every employee on your payroll on 5 April must receive a P60.

A P60 is an annual certificate showing an employees total pay and tax deducted during the tax year. Employers must provide one to every employee on their payroll on 5 April.

Who gets a P60: All employees on your payroll on 5 April (last day of tax year)
Deadline to provide: By 31 May following the tax year end
Format: Paper or electronic (with employee agreement for electronic)
Leavers: Do NOT issue P60 to employees who left before 5 April
Multiple employments: Issue P60 for each PAYE employment with you

Information on P60

Employee details: Name, National Insurance number
Pay in this employment: Total taxable pay in the tax year
Tax deducted: Total income tax deducted
NI contributions: Employees NI deducted and NI category
Student loan deductions: Total student loan deducted (if applicable)
Statutory payments: SSP, SMP, etc. paid
Final tax code: Tax code used at year end

Why employees need P60

Employees use their P60 to:

Complete Self Assessment tax returns
Prove income for mortgage applications
Claim tax refunds from HMRC
Apply for benefits or tax credits

Give employees a P60 (opens in a new tab)

Common compliance issues to avoid

Late FPS: Submit on or before payday, not after
Wrong tax code: Apply HMRC-notified codes promptly
Missed EPS: If no payments made, send EPS to avoid estimated bill
Late payment: Set up Direct Debit to avoid missing deadlines
Year-end rush: Plan February/March to avoid 19 April panic

Correct PAYE errors

How to fix mistakes in your payroll submissions before they become penalties

Penalty rates reference

Know the consequences of non-compliance:

Late filing penalties

HMRC charges monthly penalties for late FPS submissions based on number of employees.

HMRC charges penalties for late filing of Full Payment Submissions (FPS). Penalties are calculated monthly but issued quarterly.

1-9 employees: £100 per month late
10-49 employees: £200 per month late
50-249 employees: £300 per month late
250+ employees: £400 per month late
De minimis threshold: No penalty if quarterly total under £75
3-day easement: No penalty if FPS submitted within 3 days of payday
New employer first FPS easement: No penalty if the first FPS is sent within 30 days of paying an employee

When penalties are NOT charged

FPS is late but within 3 days of payday (though regular late filing may be challenged)
You are a new employer and sent your first FPS within 30 days of paying an employee
You have a reasonable excuse (appeal required)
You sent an EPS to say no employees were paid that month

Additional charges

Specified charges: If you fail to file and HMRC estimates your liability, you may face a specified charge (estimate based on previous returns). Interest accrues on unpaid amounts from the due date.

What happens if you do not report payroll information on time (opens in a new tab)

Late payment penalties

Paying late triggers escalating penalties based on how often you pay late.

First default in tax year: No penalty (first failure does not count)
Defaults 1-3: 1% of amount late
Defaults 4-6: 2% of amount late
Defaults 7-9: 3% of amount late
Defaults 10+: 4% of amount late
6 months late: Additional 5% penalty
12 months late: Further 5% penalty
Interest: Daily interest charged from due date to payment date

Late payment penalties for PAYE and National Insurance (opens in a new tab)

Useful resources

gov.uk

Monthly PAYE compliance checklist

Monthly PAYE compliance at a glance

On or before each payday

Submit Full Payment Submission (FPS)

Monthly tasks (by 19th)

Submit Employer Payment Summary (EPS) if needed (opens in a new tab)

Monthly payment (by 22nd)

Pay PAYE to HMRC

Quarterly payment option

Annual tasks

PAYE year-end tasks

Common compliance issues to avoid

Correct PAYE errors

Penalty rates reference

Useful resources

Check your PAYE bill online (opens in a new tab)

Rates and thresholds 2026/27 (opens in a new tab)

Basic PAYE Tools (opens in a new tab)

Monthly PAYE compliance checklist

Monthly PAYE compliance at a glance

On or before each payday

Monthly tasks (by 19th)

Monthly payment (by 22nd)

Quarterly payment option

Annual tasks

Common compliance issues to avoid

Penalty rates reference

Useful resources

Related journeys

Complete PAYE year-end

Fix PAYE problems