Real Time Information (RTI)

What is RTI, and how will it affect me?

Real Time Information (RTI) is a system for reporting Pay, Tax, National Insurance and other details about your employees to HMRC.

It is thought that by collecting payroll data in real time, individuals’ tax deductions will be more accurate throughout the year. This should also make the PAYE system easier to operate, thus releasing the burden on employers and providing better tax administration to HMRC.

As an employer, you are responsible for all tax deductions and calculations.

HMRC require you to return year-to-date figures at the same time as payment is made to your employees, whether weekly, fortnightly or monthly.

You must send Full Payment Submissions on or before the pay date. The pay date is when the employees get paid (receive the money).

• All employers must go through a one-off alignment process in order to synchronise their data with HMRC, achieved by sending the first Full Payment Submission (FPS).

• Employers and pension providers tell HMRC about Tax, National Insurance contributions and other deductions on or before pay day, whether weekly, monthly or any other period, via a Full Payment Submission (EPS).

• The Employer Payment Summary (EPS) reports any adjustments to the expected monthly payment from an employer to HMRC.

• The Employer Payment Summary also notifies HMRC that the employer is claiming Employment Allowance.

• The Full Payment Submission (FPS) reports new starters and leavers.

HMRC may charge a fine if you do not report payroll information on time.

What do I need to do?

1. Prepare your data

   HMRC require accurate employee data for RTI. You must ensure all Employee Details are up to date and accurate.

   Forename1 field must contain the their given names, for example, Catherine rather than Kate or Matthew rather than Matt.

2. Identify Pensions

   RTI requires Pensions identifying on the FPS.

3. Identify Benefits in Kind

   RTI also requires any Benefit in Kind payments identifying. For example, a company may charge the tax on private medical contributions in the payroll.

In this section:

• Prepare your Data

• Employee Data

• Irregular Payment

• Working Hours

• Passport No

• Occupational Pension

• Trivial Commutation Payments

• Country

• On Strike and Employee Requested Zero Contracted Hours

• Payment to a Non-Individual

• BACS

• Identify Pensions

• Identify Benefits in Kind

• To send the First FPS (after you have run your first payroll)

• What do I need to do for each payroll run? (FPS)

• To send an FPS

• What do I need to do each month? (EPS)

• Apprenticeship Levy

• Employment Allowance

• How do I process a new starter?

• How to process a new starter without a P45

• Receiving a P45 after the employee's first pay day

• How do I process a leaver?

• How do I make a payment after leaving?

• Making an additional payment after an employee's leave date

• I have made the wrong employee a leaver and have sent the FPS

• Moving an Employee

• What do I do at year end?

• What if I cease trading?

• Earlier Year Update (EYU)

• Earlier Year Update - Option 1

• Earlier Year Update - Option 2

• Earlier Year Update - Option 3

• Glossary