What is an Earlier Year Update?
An Earlier Year Update (EYU) is a notification to HMRC informing them that one or more figures you sent them on your RTI reports for a previous tax year was wrong.
If you realise you’ve made a mistake on an RTI report in a historic tax year, for example, if you reported an employee’s pay as higher than it actually was, then you should send HMRC an EYU.
If you realise you’ve made a mistake in the current tax year, you can usually correct that on your next RTI submission. You can do this through HMRC’s Basic Tools software.
The EYU should show the difference between what you should have reported and what you actually reported. There are separate sections to show the original and revised figures.
Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.