What is RTI?
On 6th April 2013, HMRC changed the way nearly all UK businesses report Pay As You Earn (PAYE).
Real Time Information, or RTI, is a new system that HMRC has introduced to improve the operation of PAYE. It’s the biggest change to the PAYE system since 1944!
RTI doesn’t change the way you calculate PAYE, it just means you’ll need to make more regular submissions. Each time you pay your employees you’ll need to submit PAYE information to HMRC, rather than just once a year at Payroll Year End.
What you’ll need to submit to HMRC
RTI means you’ll need to submit PAYE information to HMRC every time you pay your employees.
Here’s a brief summary of the submissions HMRC require from employers:
Employers Alignment Submission (EAS)
If you need to submit an EAS, HMRC will let you know, but it’s mostly for larger businesses (more than 250 employees).
Full Payment Submission (FPS)
You’ll need to submit an FPS to HMRC every time you pay your employees. This is the most common submission and contains details of employee payments & deductions. HMRC will use this to calculate how much PAYE and NIC is due.
Employer Payment Summary (EPS)
The EPS is used to notify HMRC of any reductions to totals already submitted, or if no payment is due to be made. The submission should be made before your monthly or quarterly payment is due.
National Insurance Verification Request
NVR submissions allow you to validate an employee’s NI number or request one if you don’t have it. This submission can be made at any time you need.