From the end of this tax year, an Earlier Year Update (EYU) will no longer be accepted by HMRC as a valid RTI submission to report changes to employees’ pay details for tax year ending 5th April 2021. HMRC had originally planned to abolish the Earlier Year Update for tax year 2019-20 and onwards.
An Additional Full Payment Submission must be submitted instead to report the correct year to date figures for an employee to HMRC.
For tax years up to and including 2017-18, any amendments must be reported to HMRC via an EYU submission only. For 2018-19 and 2019-20, a correction submission can be made using either an Earlier Year Update or an Additional Full Payment Submission to report changes to HMRC.
For tax years 2018-19 and 2019-20, in order to avoid any issues with employers trying to use both options, BrightPay decided to only cater for amendments using the Additional Full Payment Submission option. An Additional Full Payment Submission will report the correct year to date details for employees to HMRC, rather than amendments that the Earlier Year Update would report.
To make corrections in BrightPay, you need to re-open the payslips for the employee in BrightPay, make the necessary changes and finalise the payslips to the last pay period again.
To subsequently create an Additional Full Payment Submission for submission to HMRC, follow our simple instructions here.