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Reporting payroll information under RTI

Reporting payroll information under RTI

Real-time information (RTI) was introduced in 2013 as a quicker and more efficient method of reporting payroll information to HMRC. Rather than making one year-end payroll submission, RTI obliges employers to submit monthly reports i.e. in ‘real-time’.

RTI reporting requirements

There are 2 main payroll submissions you will have to make to HMRC under the RTI system: full payment submissions and employer payment summaries.

Full payment submissions

Full payment submissions (FPS) are used to update HMRC on payments made to employees along with any deductions made to their gross pay. These should be sent to HMRC on or before your employees’ payday.

Remember…

You’ll sometimes be required to include extra information on an employee’s FPS. Remember to always report further information when:

 

  • a new employee is added to your payroll system

  • an existing employee leaves your payroll system

  • you start paying an employee a workplace pension

  • it’s the final report of a tax year.

How to submit

All of this is handled using your payroll software. Simply enter your Accounts Office reference and PAYE reference (you will have received these from HMRC when you registered as an employer) and follow the on-screen instructions. Contact our team if you are unsure about how to fill out the form.

Employer payment summaries

You’ll need to send an employer payment summary (EPS) instead of an FPS if you haven’t paid any employees in a certain tax month.

The EPS will notify HMRC that you weren’t required to submit an FPS for the month, and will prevent them from wrongly sending a penalty notice.

EPSs must be sent by the 19th of the following month. Failing to do this may result in HMRC penalising you non-submission of an FPS.

Remember…

You’ll be required to send both an FPS and an EPS if you:

 

  • claim the Employment Allowance

  • reclaim maternity, paternity, shared parental leave or adoption payments

  • reclaim Construction Industry Scheme (CIS) deductions (if you’re a limited company)

  • claim a holiday on national insurance contributions for past tax years.

How to submit

The process for submitting an EPS is similar to sending an FPS. Have your reference numbers at the ready and follow the instructions given by your software. Give us a call if you get stuck.

Get in touch

Operating payroll in-house can be a major time-drain for small businesses: submitting monthly reports, dealing with workplace pensions and handling employee benefits – among many other things.

Contact us at tracya@knightandcompany.co.uk or call 01628 631 056 to find out how outsourcing your payroll operations can benefit your business.