There have been a few queries around how to correct errors made on an FPS, eg to correct an under reported amount of pay or deductions. HMRC’s guidance at http://www.hmrc.gov.uk/payerti/reporting/errors.htm#3 reflects HMRC's preferred way of reporting corrections.
An overriding rule is that if the correction necessitates an additional payment to the employee outside of the regular payroll cycle you must submit an additional FPS on or before the date of the additional payment. Eg if you pay an employee and report the pay on an FPS and the employee spots that he has been underpaid and you correct that by making an additional payment.
If the employee was paid inside that regular payroll cycle, but the incorrect amount was reported on the FPS, because between submitting the FPS and paying the employee the amount payable changed (eg due to you receiving information confirming the hours worked were different to expectation) then the current HMRC guidance states that you can either:
However, some software defaults to submitting an amended FPS showing the recalculated pay for the period. Accordingly, HMRC have confirmed that their advice at: http://www.hmrc.gov.uk/softwaredevelopers/rti/errors-corrects-payroll.pdf still stands, that is, ‘our systems will cope with an FPS that states the total recalculated pay for the pay period rather than just the additional amount as long as the year to date figure is correct.’
RTI enabled software will follow one or other of these methods.
The fundamental requirement is for the year to date figures for the latest RTI submission to be as accurate as possible. HMRC and DWP will use the most recent year to date values to update their systems.
Licenced Accountant in Brighton