Is there any time limit on paying wages early?

[UKSBD]

2 employees on PAYE

Usual payment date is 28th of month

Is there any reason why wages can't be paid earlier in the month (ie. today)

Also, if there is no reason why wages can't be paid early, is it allowed to pay a 2 or 3 months months in advance, but just running payroll as it is?

 

[Paul Kelly ICHYB]

In corporate life, we always got paid early at Xmas, so, unless things have dramatically changed, it shouldn't be an issue, as long as you are clear that it is an early payment and not additional.....!

Re paying a few months in advance, your risk increases - what if someone walks out the day after you pay them 3 months?

 

[Newchodge]

2 employees on PAYE

Usual payment date is 28th of month

Is there any reason why wages can't be paid earlier in the month (ie. today)

Also, if there is no reason why wages can't be paid early, is it allowed to pay a 2 or 3 months months in advance, but just running payroll as it is?

Paying early in the current pay period is fine. You have to issue a return to HMRC before the 5th of next month showing ALL the money paid during the period 6th to 5th. Paying someone 2 or 3 months in advance would mean them losing out on NI free allowances and will destroy any UC claim they may have as the figures will show a huge payment in 1 month. Please don't do it.

 

[UKSBD]

Paying someone 2 or 3 months in advance would mean them losing out on NI free allowances and will destroy any UC claim they may have as the figures will show a huge payment in 1 month. Please don't do it.

It's only myself and my wife so no UC involved ?

It was a hypothetical question more than anything else, can't really see much advantage in doing it, but wondered if it was an option.

 

[DontAsk]

2 employees on PAYE

Usual payment date is 28th of month

Is there any reason why wages can't be paid earlier in the month (ie. today)

No. In fact I just paid myself and SWMBO today

Also, if there is no reason why wages can't be paid early, is it allowed to pay a 2 or 3 months months in advance, but just running payroll as it is?

If you need the cash you could take it as a directors loan, subject to the usual caveats.

 

[Paul Kelly ICHYB]

Accountants - can the money be taken now, but posted later?

 

[GLAbusiness]

Can you take it as a director's loan and then pay future salary to DLA

 

[Argentum Tax]

Accountants - can the money be taken now, but posted later?

Unfortunately not.

As Cyndy (@Newchodge) said, all of the wages paid from 6th to 5th of the following month must be included in that month’s PAYE report (RTI I think it’s called) to HMRC by the 5th of the following month.

To pay wages in one month but report in a later month could be a breach of the regulations.

 

[UKSBD]

You have to issue a return to HMRC before the 5th of next month showing ALL the money paid during the period 6th to 5th.

Following on from this

My accountant does all my payslips, RTI, etc. but I am a bit confused as to timings

Is a payslip different to a return?

As well as the payslips the accountant sends to us, do they also issue a return to HMRC at end of the month?

Looking at my last payslip which I received on about 14th December.
It is dated 30/12/2023 and is for month 9.

Is this payment for work done between 1/12/2023 and 31/12/2023 or is it for work done from 6/11/2023 to 5/12/2023?

 

[DontAsk]

Wage slip shoes the nominal date of payment. Payment to you is for the dates specified in your contract, or probably for the month. The returns are for payments occuring during the tax months, hence 6th/5th.

 

[Newchodge]

Following on from this

My accountant does all my payslips, RTI, etc. but I am a bit confused as to timings

Is a payslip different to a return? Yes. The 2 are entirely different

As well as the payslips the accountant sends to us, do they also issue a return to HMRC at end of the month? Yes. They should really send you a copy.

Looking at my last payslip which I received on about 14th December.
It is dated 30/12/2023 and is for month 9.

Is this payment for work done between 1/12/2023 and 31/12/2023 or is it for work done from 6/11/2023 to 5/12/2023? That depends on your contract. The date of payment has nothing to do with the pay period. The pay period is the period in whioch the work being paid for is done. All my director payrolls have the directors paid for all the work done in the calendar month - so pay period ends on last day of month. They are due to be paid on whatever their contract says and they actually get paid on whatever date I run their payroll.

 

[Ian J]

It was a hypothetical question more than anything else, can't really see much advantage in doing it, but wondered if it was an option.

I used to work for what was then the oldest merchant bank in England and they used to pay their staff monthly in advance. It was great when you joined but a real pain when you left.