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).

What is involved?

• 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). -LINK

• 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). LINK

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

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

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

HMRC may charge a fine if you do not report payment 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:

• Identify pensions

• Identify benefits in kind

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

• Send an FPS

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

• Apprenticeship levy

• How to submit an EPS

• Employment allowance

• Process a new starter?

• Process a new starter with a P45 in the previous tax year

• Process a new starter without a P45

• Receiving P45 after the employee's first pay day

• Process a leaver

• Restore a leaver

• Make an additional payment after the employee’s leave date

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

• Move an employee

• Cease trading

• Earlier year update (EYU)