Understanding Full Payment Submission in FreePayroll

What is Full Payment Submission (FPS)?

Full Payment Submission is an essential and required part of the UK's PAYE (Pay As You Earn) system used by employers to report wages, taxes, and other deductions to HMRC. In FreePayroll, the FPS is sent automatically to HMRC right after you submit a payroll. This ensures compliance with HMRC requirements and streamlines your payroll processes.

How FreePayroll Handles FPS

Automatic Submission: Once you complete and submit your payroll, FreePayroll automatically sends an FPS to HMRC. The only manual requirement, is to select a late reason for the submission before submitting payroll, if you are submitting the payroll after the pay date.

Notification of Submission Status: Within approximately 5 minutes after submission, you will receive an email notification. This email will inform you whether the FPS was successfully accepted by HMRC or if it failed. You can also check the submissions status, by navigating to "Reports" -> "HMRC Submissions" -> "Full Payment Submissions".

Error Handling:
- If the FPS fails, the email will include a CSV attachment that lists all the errors identified by HMRC.
- Review the errors provided in the CSV to understand what went wrong with the submission.

Steps to Follow If FPS Fails

Check the Error: Open the CSV file attached to the email to examine the specific errors HMRC has flagged. You can also download the csv containing the errors, by navigating to "Reports" -> "HMRC Submissions" -> "Full Payment Submissions". Find your submissions and click on download.

Fix the Errors: Based on the information provided, correct any issues in the payroll entries. This might involve adjusting employee details, correcting tax codes, or amending payment amounts. For further help check Submissions Common Error Messages

Resubmit the FPS: After making the necessary corrections, resubmit your payroll. FreePayroll will send a new FPS to HMRC. It is crucial to address and resubmit the errors promptly to ensure that your payroll records are up to date and compliant.

No Further Submissions Without Correction: Remember, failure to correct and resubmit the failed FPS may prevent you from submitting future payrolls. It is imperative to rectify the failed submission to avoid disruptions in your payroll processing.

Updated on: 09/10/2024