RTI submissions to HMRC
What is RTI
If you employ staff, you need to report payroll information to HMRC. This process is called Real Time Information (RTI). It might sound complicated, but the idea is simple – every time you pay your employees, HMRC needs to know.
Before RTI, employers only reported employee pay and deductions at the end of the tax year. That meant HMRC had to wait months to get up-to-date information. RTI changed that now, every time you run your payroll, a report is sent automatically to HMRC. This helps make sure:
– Employees’ tax codes are up to date.
– Benefits like Universal Credit are calculated correctly.
– HMRC has accurate records all year round.
There are several types of RTI submission:
– Full Payment Submission (FPS): Sent on or before each payday. It includes employee pay and deduction details.
– Employer Payment Summary (EPS): Sent monthly to report adjustments such as Statutory Maternity Pay, Statutory Sick Pay, and employment allowance. It is also used to notify
HMRC if no payments were made in a tax month.
– Earlier Year Update (EYU): Used after the tax year ends to correct or adjust earlier submissions.
– Employee Year-End Forms:
- P60 – Given to employees by 31 May for the previous tax year.
- P11D – Given to employees by 6 July for reportable benefits.
How much are the Penalties?
The following monthly penalties may apply based on the number of employees:
| Number of Employees | Monthly Penalty |
| 1 to 9 | £100 |
| 10 to 49 | £200 |
| 50 to 249 | £300 |
| 250+ | £400 |
In addition, if your FPS is over 3 months late, HMRC may charge an extra 5% of the PAYE and NICs due.
Late Payment Penalties
Late or incorrect payment of PAYE and NI can also trigger penalties. Since April 2015, HMRC applies automatic in-year penalties if the payment differs from the expected amount by more than £100.
How EPS Helps
When you outsource to EPS, we take care of everything, so you stay compliant and avoid stress, you can be confident that:
– All RTI submissions are filed correctly and on time.
– HMRC payments are notified monthly or quarterly.
– Deadlines are never missed.
– Compliance risks are reduced.
RTI Penalties – What You Need to Know
HMRC can issue penalties if you:
– File a Full Payment Submission (FPS) late.
– Fail to send the expected number of FPSs.
– Don’t send an EPS for months when no employees were paid.
Penalty exemptions may apply if:
– It’s your first late report in a tax year.
– You’re a new employer and submit your first FPS within 30 days of payment.
– Your FPS is no more than 3 days late (applies only in limited cases).