Additional Voluntary Contributions Included Incorrectly in Full Payment Submission

This issue was found on Thursday, 26th March 2026. A fix was done and released on Wednesday, 8th April 2026.

What happened

Salary sacrifice Employee gets Tax & NI relief Employer gets Ers NI relief The deduction is made before tax and NI. There are a number of special rules with this type of deduction. Additional Voluntary Contributions (AVCs) were incorrectly included in the Full Payment Submission Full Payment Submission is an RTI online submission to be sent on or before each payday. This informs HMRC about the payments and deductions for each employee. (FPS Full Payment Submission is an RTI online submission to be sent on or before each payday. This informs HMRC about the payments and deductions for each employee.) sent to HMRC His Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers. under Not Net Pay Arrangement Employees only get Tax Relief. The deduction is made after the NI is caculated but before tax is caculated. pension payments. This means some pension figures reported to HMRC were higher than the amounts employees actually contributed.

What this does not affect

No employer or employee has been paid the wrong amount through Staffology Payroll. The bug has not changed the following payments for:

• Take home pay
• Income tax
• National Insurance A system of contributions paid by workers and employers in the UK, which funds various state benefits, such as the State Pension and Jobseeker's Allowance. (for both employees and employer contributions)
• Pension contributions (for both employees and employer contributions)

Who might be affected

The only employees who could be affected are those claiming Universal Credit. This is because the pension figures submitted using the Real Time Information Real Time Information is the current method for reporting PAYE to HMRC, comprising FPS and EPS submissions. (RTI Real Time Information is the current method for reporting PAYE to HMRC, comprising FPS and EPS submissions.) to HMRC were overstated and this may have affected how their Universal Credit was calculated during the affected period.

Staffology Payroll think it is important to share that: 

• The impact on Universal Credit should be small for the majority of affected employees.
• Staffology Payroll and employers do not know which employees claim Universal Credit, so it is not possible to identify who has been affected.
• Some employees might have noticed a discrepancy and resolved it through their Universal Credit journal.

How to know if your organisation is affected

If employees are on a Salary Sacrifice pension scheme and have a value displayed against them in the AVC Pension YTD The cumulative amount of an employee's earnings or deductions from the beginning of the current fiscal year up to the current pay period. column on the Pension Memberships report, then you may have been affected.

If any of your employers and employees have been affected, IRIS are sending you an email to securely confirm the total number of employers and employees affected. This email is being sent on Tuesday, 30th June 2026. If there are any delays, the email might be received a few days later.

To confirm, IRIS and Staffology Payroll cannot identify which employees are affected. We can only access the number of employees that may have been affected. Specific details about employees who claim Universal Credit (or their UC calculation), cannot be access by IRIS or you.

Why you or Staffology Payroll cannot correct the figures

Due to the way Universal Credit is calculated, updating the figures retrospectively in Staffology Payroll, or asking employers to do so, could cause issues with the Universal Credit position for affected employees. The resolution is for affected employees to raise a dispute directly with the Department for Work and Pensions (DWP).

What affected employees must do

Information in this section is correct as of the date of original publication on 29th June 2026. For further help and guidance, about Universal Credit online account process, employees should contact Universal Credit directly.

If an employee believes their Universal Credit award was affected during the period when incorrect pension figures were reported, they must send a Real Time Information (RTI) dispute to the DWP using their Universal Credit online journal.

We have created an email template for you to share with affected employees. This explains the issue and what they need to do. Download the employee email template.

What affected employees need to do when sending an RTI dispute in their Universal Credit online account:

1. Leave a message in the journal explaining that their employer has identified a payroll reporting error affecting pension contribution figures submitted through RTI to HMRC, covering the period March to May 2026.
2. Also include a request for a formal decision on the Universal Credit award. DWP is required to issue this within 14 days. A formal decision carries formal appeal rights.
3. Attach supporting evidence, such as payslips for the affected period and, if available, a copy of their HMRC Personal Tax Account showing what was reported through RTI.

What needs to be done if the RTI dispute does not resolve the issue

If sending an RTI dispute does not resolve the issues, affected employees must: 

• Request a Mandatory Reconsideration within one month of the formal decision date. Late requests can be submitted up to 13 months from the decision date with good reason provided.
• If the Mandatory Reconsideration outcome is unsatisfactory, the employee has one month to appeal to the Social Security and Child Support An ongoing scheme for assessing and collecting child maintenance payments from parents who have separated. Tribunal.

Where to get further help and support

If you have any questions or would like additional support, contact our support team:

Create a case Sign in required | hello@staffology.co.uk | 0344 815 5555
Create a case guide | 'One Number' Telephone guide | HMRC Service Availability External website

The Known Issues page is being kept up to date with any further updates about this issue.