Feedback from the RTI Pilot has identified that a number of employers are making payments of statutory deductions to HMRC based on the tax weeks shown on the P32 form, rather than the actual payment dates included in the FPS submissions, because some software links to the P32. HMRC will calculate the employers liability based deductions made during a tax month running from 6th of the month to the 5th of the following month, therefore any deductions made during the month should be paid to HMRC at the appropriate time and employers should not delay payment to the following month based on the P32 calendar.
Some employers are recording the date they process the payroll, which is before the payment date – so the date might fall in the wrong tax month. Some are using the date the money is due – and this can be in the past if employees are paid in arrears. This could fall in the wrong tax month.
For example, any deductions from a weekly payroll with a payday of 5 May will fall into tax month 1, regardless of the fact that they are in tax week 5 (and therefore in month 2 on the P32) and will need to be paid to HMRC no later than 19/22 May.