Solution Properties
Solution ID:
222001000101791
Last Modified Date:
Wed Feb 26 11:55:47 UTC 2025
Taxonomy Path:
Case category//How do I...//processing
Author:
[email protected]
Correcting errors in previous tax years
Description

If you find that there has been an error in a previous tax year to an employee(s) pay, you must correct the effected pay run. This ensures the correct PAYE and NI deductions opposed to trying to account for it in the current pay period.

This also includes any recalculation of figures due to a change of dates. For example, statutory maternity pay (SMP).

 NOTE: You don't need to issue a new P60. HMRC stipulates that an employee should only receive one P60 per tax year. 

Once the correction has been made in Sage Payroll, you must notify HMRC of the new figures. This is done by sending a Supplementary FPS.

You may also need to notify HMRC if the changes relate to information normally included in an Employer payment summery (EPS) submission. You don’t process this through Sage Payroll.

Cause
Resolution

1. Correct the payroll

You must edit the pay period that contains the incorrect figures. For more information, read Correct a completed pay run.

2. Inform HMRC of the changes

You need to inform HMRC of the corrected figures. This is done by sending a supplementary FPS. For more information, read Supplementary FPS.

3. Additional information 

A supplementary FPS doesn’t include the following information:

  • Reclaim figures of statutory payments
  • Small employer benefit status
  • CIS suffered amount
  • Employment allowance figures

An EPS would include this information, rather than an FPS. You can't submit a supplementary EPS in Sage Payroll. Instead, you should use the HMRC's basic tools. For more information, read Basic PAYE tools user guide.

Steps to duplicate
Related Solutions

Understanding corrections

Reverse a correction deduction

Understanding corrections