Can Payroll Be Backdated? What HMRC Really Allows

Payroll deadlines come fast, and mistakes happen - maybe you forgot to add a new hire or missed a submission. But can you fix it after the fact or will HMRC hit you with fines? Here’s what you need to know about backdating payroll.

Key Takeaways

• You can’t legally backdate payroll in the UK. Payments must be reported to HMRC on or before the actual pay date.

• Mistakes can be fixed using the correct HMRC process like submitting a late FPS or a year-end correction.

Can You Legally Backdate Payroll in the UK?

Can payroll be backdated? No, you can’t legally backdate payroll by reporting it as if you paid employees earlier than you actually did. HMRC requires that all payroll is reported on or before the day you pay your team. This is called Real-Time Information (RTI) reporting, and it’s a legal requirement.

RELATED: How Long Does It Take for Payroll to Process?

A common question business owners ask is: “How far can you backdate payroll?”

The reality is, you’re not supposed to backdate it at all. 

If you’ve missed a payment, you must report it late and provide a valid reason to HMRC. Trying to show that you paid someone on an earlier date than you actually did can lead to penalties or compliance issues.

Remember there’s a difference between backdating payroll and paying back pay.

✅ Back pay is allowed. It’s when you pay someone now for hours or work they were owed in the past.

❌ Backdating payroll is not allowed. That’s when you tell HMRC a payment happened on a date it actually didn’t.

If you’ve made a mistake or missed a payment, it’s fixable, but you have to report it the right way.

RECOMMENDED READING: What is the Payroll Payment Process Like? (Step-by-Step)

Can I Run Payroll for Last Year?

Not in the usual way. You can’t simply “go back” and run payroll for a previous tax year like it’s still open. But there are ways to correct it - you just have to follow HMRC’s rules.

If you completely missed a payroll run from last tax year (before 5 April), here’s what you can do:

• If the mistake involves wrong or missing figures, you’ll need to send an FPS (Full Payment Submission) with the correct year-to-date totals.

• If that’s not possible through your payroll software, you may need to submit an Earlier Year Update (EYU).

• In all cases, you must report the correction to HMRC as soon as you discover the issue.

Important: This isn’t about “backdating” payroll - you’re correcting it, not pretending it happened on time. HMRC expects you to be honest about when the payment was actually made.

If you're not sure what to do, it's always best to get support from a payroll expert who knows how to handle HMRC reporting correctly.

What We Think

Backdating payroll might seem like an easy way to fix a mistake, but it can lead to problems with HMRC if it’s not done the right way. For small business owners, freelancers, and sole traders, it’s easy to miss a payroll deadline when you’re handling everything yourself, and that’s totally normal.

The issue is, HMRC expects payroll to be reported on time, every time. If it’s late or incorrect, it can lead to fines or extra stress. But don’t panic, these mistakes can be fixed, as long as you report them properly.

How JAFA Can Help

At JAFA, we know how stressful payroll can be when you're trying to manage everything yourself. That’s why we make it simple. With our app-based payroll service, you can report wages, pay staff, and stay on top of deadlines - all in one place.

No spreadsheets. No confusion. Just a clear, straightforward way to get things done. If you miss a deadline or need to make a correction, we’ll help you report it properly to HMRC and avoid unnecessary penalties.

We can even handle staff payments on your behalf, giving you more time to focus on your business, and peace of mind knowing it's done right.

Contact our expert accountants based in Birmingham, UK, either by booking a FREE discovery call or calling us on +44 121 227 6277.