Find out more about RTI submissions to HMRC, the information that needs to be sent, the deadlines and how it should be sent.
Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in this article is legally correct but it is for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional because mistakes can result in penalties.
What Does RTI Stand for?
RTI stands for Real-Time Information and relates to the submission of certain payroll information to HMRC online.
What is an RTI Submission?
An RTI submission contains essential pieces of information about the people on your payroll, how much they are paid and deductions made. It is essential this information is passed to HMRC so that each individuals tax records can be updated and they know how much tax to expect to be paid over to them.
Up until 2013, this information was sent on an annual basis. However, since then, RTI submissions were introduced meaning this information needs to be sent to HMRC every time employees are paid. Despite the extra burden, this means that employees have more accurate tax codes due to the availability of information so they are more likely to pay the right amount of tax.
What Information is Included in an RTI Submission?
RTI submissions are made up of different online forms, each one needed to send different information over to HMRC. The main two forms that make up RTI submissions are the Full Payment Submission (FPS) and Employer Payment Summary (EPS).
Full Payment Submission (FPS)
The FPS is the main submission used by employers because it needs to be submitted every time their employee is paid. An FPS contains detailed information about each employee who is being paid including their:
- Personal details such as name, national insurance number;
- Tax code;
- Tax week or month, whichever is applicable;
- Taxable pay by period and to date;
- Deductions such as income tax, national insurance, student loans along with student loan plan type and pension;
- Statutory pay such as statutory maternity pay (SMP), statutory paternity pay.
In addition to the above, the FPS also contains details of starters and leavers for the period you are reporting. That means P45s and P46s are no longer required. Although leavers should still be given a copy of a P45.
An FPS needs to be submitted every time employees are paid, whether that’s weekly, fortnightly or monthly. They can be submitted before they are paid, if payroll is prepared in advance however care must be taken that all changes have been captured to avoid the need for submitting an FPS correction.
Employer Payment Summary (EPS)
An EPS needs to be sent to HMRC by the 19th of each month to claim a refund from HMRC for statutory payments including:
An EPS is also required if there is no FPS for a particular tax period to notify HMRC that there are no active employees otherwise HMRC may issue a penalty for failing to file an FPS.