Similarly, if business owners want payments to be made on the first working day after Easter Monday, then the latest submission date for Bacs payments is Wednesday 17 April.
There are two more Bank Holidays following hard-on-the-heels of Easter – the first on Monday 6 May 2019 and the second on Monday 27 May.
Business owners should check with the Bacs processing calendar to ensure that they are fully aware of the critical payment dates.
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The impact of bank holidays on reporting deadlines 16 April 2019
As the Easter weekend approaches, which for some will see a long weekend being enjoyed, for others it will provide challenges due to the impact that a non-banking day will have on the day in which wage and salary payments are made to employees and reported to HMRC. In 2019 Good Friday falls on 19 April with Easter Monday being 22 April. For many, particularly those who work in retail, hospitality and care sectors, these remain working days, however they are not banking days and so payments will likely be made on different days to counter this.
The April edition of the Employer Bulletin provides a reminder of the impact this could have when making a Full Payment Submission (FPS).
‘Reporting payroll when your normal payday falls on a non-banking day
The date you pay your employees will usually be agreed when they begin working for you. Typically, this could be at the end of a calendar month or on Friday each week. It is essential that you report when you pay your employees on time and use the right payment date when doing so. Remember if you use an incorrect payment date, this could impact on your employees’ financial situation, including any income related benefits, such as Universal Credit, so it is important that you send accurate reports to HMRC on time or as soon as you able to do so. However, there may be occasions, when you pay your employees at a different time and not on the agreed day or date. This can arise when the regular payment date falls on a non-banking day (i.e. on a Saturday or Sunday or on a Bank Holiday). If so, a payment reporting easement applies to ensure that this payment is treated correctly for tax purposes. The date you should enter on your Full Payment Submission (FPS) will depend on when you actually pay your employees and whether this is earlier or later than their normal payday.
Easter 2019
You may not be able to pay your employees on their regular payday during the Easter Holidays in April this year as there will be four consecutive non-banking days (19 April to 22 April 2019 inclusive). If you would normally have paid your employees on any one of those dates, but instead will pay them early on the last working day before the Bank Holidays; then you must report your normal pay date on your FPS, for example:
Paying early
When a regular payday falls on a non-banking day, but payment is made on the last working day before the regular payday.
Regular date of payment
Non-banking date
Actual date of payment (or earlier*)
Payment date you use on your FPS
19 April 2019
19 April 2019
18 April 2019
19 April 2019
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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