Some employers need (or choose) to pay their employees earlier than usual over the Christmas period. This might be because the business closes for the Christmas holidays or because key payroll staff are away during the festive season.

Regardless of why it occurs, it is important that your PAYE submissions for December include the usual payment date, and not the earlier date that employees actually receive their pay.

Reporting the earlier payment date can cause issues for employees who claim Universal Credit. To avoid this, HMRC allows a specific reporting easement for December payments.

If you pay employees early, for instance on Friday 12 December, instead of the usual last Friday of the month (Friday 26  this December), you should:

• Report the payment date on the Full Payment Summary (FPS) as 26 December 2025 (your usual or contractual payment date).
• Submit the FPS to HMRC on or before 26 December 2025.

If the earlier payment date (Friday 12 December) is reported instead, employees might appear to have received two payments within one Universal Credit assessment period and none in the next, which can mean their award is withdrawn one month and then increased the next. Following the process above helps to protect employees’ eligibility for income-based benefits such as Universal Credit.

This article reflects the position at the date of publication. If you are reading this at a later date you are advised to check that that position has not changed in the time since.  

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