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Resolving Payroll Submission Errors for Accurate HMRC Reporting

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đź”· Highlights

  • The incorrect payroll submission date impacted HMRC’s year-to-date figures.
  • Software limitations in Xero and missing payslips added complexity.
  • Corient created a dummy pay run and manually corrected the errors.
  • HMRC compliance restored and client expectations exceeded.

Introduction

In April 2025, a leading UK accounting firm approached Corient with an urgent payroll issue. A seemingly minor mistake—a misreported pay date—threatened their entire payroll compliance status with HMRC. What followed was a compelling story of problem-solving, persistence, and precision.

The Initial Problem: What Went Wrong?

The client had accidentally reported the March 2025 pay run with a pay date of April 30, 2025. This misstep caused serious issues:

  • Incorrect year-to-date figures were submitted to HMRC.
  • Payslips for March 2025 couldn’t be generated.
  • The client feared possible penalties or complications during year-end.

They turned to Corient for a solution, expecting not just expertise but clarity and speed.

Corient’s First Solution: The Fix

Our team immediately reached out to Xero Support and HMRC to explore correction options. However, we discovered that Xero’s policy prevented submitting payroll for a prior financial year once the deadline had passed.

The correction couldn’t be handled using Xero’s standard workflow. A new approach was required.

The New Problem: A Surprise Roadblock

As we dug deeper, more challenges emerged:

  • We had limited experience handling backdated pay runs within Xero.
  • Xero’s system restrictions meant we couldn’t amend the payroll using standard tools.
  • The client had no payslips generated for March 2025, which complicated the documentation.

The stakes had risen—and so had the complexity.

Corient’s Second Solution: Fixing the New Problem

We deployed a meticulous, multi-step workaround:

  1. Consultation and Research: Xero Support advised us to create an unscheduled pay run to manually input the correct March data.
  2. Dummy Pay Run Creation: We created a dummy pay run for the entire prior financial year, allowing for manual corrections and adjustments.
  3. Mid-Year Setup Discovery: We identified a mid-year configuration that required even more precise data input.
  4. Manual Data Input: We reprocessed every relevant pay run up to March, manually adjusting figures to align with HMRC’s requirements.
  5. Final Validation: We ensured that all changes were accurately reflected and confirmed compliance with HMRC standards.

This innovative method, grounded in technical insight, mirrors approaches we often apply in seamless payroll transformations.

The Final Outcome: Success Story

The result was a success on every front:

  • March 2025 payslips were generated accurately.
  • The year-to-date figures submitted to HMRC were fully corrected.
  • The client avoided compliance penalties and praised our dedication.

“Corient went beyond fixing an error—they restructured our payroll process to ensure accuracy and compliance. We couldn’t have asked for a more thorough, responsive partner.”

Key Takeaways: Why This Matters for Businesses

  • Minor payroll mistakes can lead to significant compliance issues.
  • Platform limitations don’t have to stop you—there’s always a workaround.
  • Partnering with a skilled team like Corient ensures accuracy, speed, and peace of mind.
  • A proactive payroll strategy safeguards your clients and your reputation.

When your payroll systems falter, it’s your response—not the error—that sets you apart.

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