What is Real Time Information (RTI)?

Real Time Information (RTI) was introduced in April 2013, changing the way that employers report PAYE to HMRC. Until that point employers were only required to report the details of employee payments and deductions to HMRC just once every 12 months, at year end.

With RTI in place, employers now submit this information to HMRC each time they make a payment to an employee, no matter how many hours that person has worked. The employee payment information is sent to HMRC using online submissions through payroll software, or using HMRC’s Basic PAYE Tools.

What are Full Payment Submissions (FPS)?

Employers need to report employee payment information to HMRC before or on each payday using a Full Payment Submission (FPS). The FPS tells HMRC about the payments you have made to your employees, as well as the details of any deductions, such as for tax or NI.

Each FPS should include:

Use the same information and payroll ID for employees each time, and these should match what you have already reported to HMRC. This ensures that the correct record is traced to avoid any errors.

You should also include extra information in your FPS about any new employees or leavers, or if you start to paying an employee a workplace pension.

Although a FPS is submitted every time a payment is made, the final FPS of the tax year will include a declaration that it is the final payment of the year.
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When should I send an Employer Payment Summary?

An Employer Payment Summary (EPS) is another type of RTI submission.

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

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