(Yes, It Happens — And No, You Don’t Need to Panic)
Payroll mistakes happen.
A missed overtime shift. A duplicated bonus. The wrong NI category. A pay date that somehow ended up in the wrong tax month.
It doesn’t matter how good you are — payroll has a sense of humour, and sometimes it likes chaos.
But once you’ve sent your FPS or EPS to HMRC, how do you fix the mistake properly?
Good news: HMRC has clear rules. Even better news: they’re not too terrifying once you know them.
Let’s walk through what to do.
🔍 Step 1 — Work Out What Went Wrong
Before touching anything, identify the error:
- Wrong pay amount?
- Incorrect tax or NI deduction?
- Incorrect NI category letter?
- Wrong payment date?
- Employee details wrong?
- Forgot to report someone?
- Reported someone who wasn’t paid?
Knowing the exact problem makes the fix simple.
🧾 Step 2 — Correct It in Your Payroll Software
HMRC’s rule is very clear:
👉 You correct payroll errors by updating the “year-to-date” (YTD) figures and submitting another FPS.
(Source: HMRC — Fix problems with running payroll)
This usually happens in one of two ways:
✔ Option A — Correct it in your next regular FPS
This is the most common.
Update the employee’s record, fix the pay/deductions/NI, and the next FPS automatically sends corrected YTD totals to HMRC.
✔ Option B — Send an Additional FPS
If waiting for the next pay run will cause problems (e.g., underpayment or overpayment), you can send an additional FPS straight away.
When doing this, payroll software will often ask for the reason — here you would choose:
👉 H – Correction to earlier submission
This tells HMRC:
“We sent something wrong… here’s the fix.”
🗂️ Step 3 — Correct Payment Dates If Needed
If you accidentally reported the wrong payment date, HMRC might put the pay into the wrong tax period.
To fix it:
✔ Send an additional FPS
✔ Re-enter the correct payment date
✔ Ensure all YTD totals are still correct
This is especially important at the end of a tax month — even one wrong date can cause mismatched PAYE liabilities.
🔁 Step 4 — Fixing Errors in NI Categories
If the wrong NI category letter was used (e.g., using A instead of C when someone reaches State Pension age):
HMRC says you must:
1️⃣ Zero out the incorrect NI category and totals
2️⃣ Apply the correct NI category
3️⃣ Report accurate YTD NI figures in your next FPS
Payroll software does most of the hard work — but only if you update the employee record correctly.
📅 Step 5 — If the Tax Year Has Already Ended
If you already submitted the final FPS for the tax year, the correction rules change slightly.
Depending on your software, you may need to submit:
✔ a “Year-End Amendment” FPS, or
✔ an Earlier Year Update (EYU) (older years only)
Your payroll software will normally guide you.
📤 Step 6 — Correcting EPS Errors
EPS (Employer Payment Summary) errors happen too — especially when reclaiming:
- Statutory Maternity Pay
- Statutory Sick Pay
- Employment Allowance
- CIS deductions
- “No employees paid” months
To fix an EPS mistake:
👉 Submit a new EPS with corrected year-to-date values
HMRC only accepts YTD figures for EPS corrections.
💰 Step 7 — If the mistake affects what you owe HMRC
Errors in reporting can result in:
- Overpayment
- Underpayment
- Mismatched PAYE liabilities
HMRC will usually correct this automatically once they receive the updated FPS or EPS — the adjustment appears in your next PAYE bill.
If there’s a dispute, Love Payroll handles HMRC so you don’t have to.
❤️ The Love Payroll Bit
At Love Payroll Limited, payroll corrections are our natural habitat.
We:
✔ Identify the error
✔ Correct your figures
✔ Re-run the payroll properly
✔ Submit the right FPS/EPS
✔ Fix NI category issues
✔ Amend year-end returns if needed
✔ Deal with HMRC if things get messy
No stress. No drama. No 3am Googling “How to reverse FPS???”
Because payroll mistakes are normal.
But fixing them correctly?
That’s what we do best.
