The FPS (Full Payment Statement) is a crucial payroll report that employers must submit on or before each payroll date. It includes essential details about employee earnings, deductions, and tax information for the reporting period.
Transferring the FPS to HMRC is vital for ensuring compliance with tax regulations and maintaining accurate payroll records.
If you encounter this error message when transferring an FPS to HMRC, it may be due to an unacceptable tax code.
To resolve this issue, follow the steps below.
Incorrect tax code applied
The tax code assigned to the employee is not acceptable to HMRC. Check the HMRC website for more information on valid tax codes.
To correct the tax code for an employee, follow the steps in portal.
Click Employee then in the search field, search for employee.
Beside the relevant employee, click VIEW.
Click Tax Details then in the Tax Code field, change the tax code.
Click SAVE.
To send the FPS, please raise a new case online, referencing this article's title and include the following details:
Employee number
Pay group
Payroll period
Incorrect and correct tax codes.