Definition
Real Time Information (RTI) is the way employers report payroll to HMRC under PAYE. Each time employees or directors are paid, the employer’s payroll software sends HMRC details of their pay and deductions on or before payday. The main RTI reports are the Full Payment Submission (FPS) and, when adjustments are needed, the Employer Payment Summary (EPS).
FPS and EPS
- Full Payment Submission: sent on or before each payday, listing everyone paid with their pay, tax and National Insurance.
- Employer Payment Summary: sent by the 19th of the following tax month to claim reductions such as Employment Allowance or statutory pay, or to tell HMRC nobody was paid.
HMRC uses these reports to calculate the employer’s PAYE bill, normally due by the 22nd of the following tax month when paid electronically.
Who reports through RTI
Every employer running a PAYE scheme reports through RTI, including a limited company whose only employee is its director. A late FPS can bring a monthly penalty, starting at £100 for employers with up to 9 employees. SmartFiling’s guide to payslips, RTI and FPS compliance covers each deadline, and its payroll service handles RTI submissions.
Related questions
- Do I need to run payroll if I'm the only director? Yes, if the director is paid £96 or more a week or gets taxable benefits; see payroll for a single director.
- How do I set up PAYE for my first employee? Register as an employer before the first payday; the first-employee PAYE guide goes step by step.
- How much does outsourced payroll cost? See payroll outsourcing costs.
Related terms
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PAYE (Pay As You Earn)
PAYE (Pay As You Earn) is HM Revenue and Customs' (HMRC) system for collecting Income Tax and National Insurance from employment income…
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Full Payment Submission
A Full Payment Submission (FPS) is the Real Time Information report an employer sends HMRC on or before each payday.
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