Key facts
- RTI replaced the old annual return system (P35/P14) in April 2013.
- Employers must submit payroll data to HMRC on or before each payday.
- The two main RTI submissions are the Full Payment Submission (FPS) and the Employer Payment Summary (EPS).
- RTI is submitted electronically through payroll software — there is no paper option.
- Late or missing RTI submissions can trigger automatic penalties.
What Is RTI?
Real Time Information (RTI) is the electronic reporting system used by UK employers to send payroll data to HMRC. Since April 2013, employers have been required to report employee pay, tax, and National Insurance details each time they run payroll, rather than submitting an annual summary at the end of the tax year.[1]
RTI was introduced to improve the accuracy of PAYE, reduce year-end corrections, and support the Universal Credit system by providing real-time earnings data.
The Two Main RTI Submissions
| Submission | Purpose | Deadline |
|---|---|---|
| Full Payment Submission (FPS) | Reports pay, tax, and NI for each employee on each payday | On or before each payday |
| Employer Payment Summary (EPS) | Reports adjustments: Employment Allowance claims, statutory payment recoveries, nil-payment months, CIS deductions | By the 19th of the following month |
Every pay run requires an FPS. An EPS is only needed when you have adjustments to report or when you have not paid any employees in a tax month.
What Information Does RTI Contain?
Each FPS includes the following for every employee paid:[2]
- Employee personal details (name, NI number, date of birth)
- Tax code and NI category letter
- Gross pay for the period and year to date
- Income Tax deducted for the period and year to date
- Employee NI contributions and employer NI contributions
- Student loan and postgraduate loan deductions
- Statutory payment indicators (SSP, SMP, SPP, etc.)
- Starter and leaver details when applicable
RTI Timing Rules
| Rule | Detail |
|---|---|
| FPS deadline | On or before each payday |
| Small employer exception | Employers with fewer than 10 employees can submit the FPS by the day after payday |
| EPS deadline | By the 19th of the month following the tax month |
| Final FPS of the year | By 19 April, flagged as “final submission for the year” |
| Nil-payment EPS | Must be sent if no employees were paid in a tax month (to avoid a late-filing penalty) |
Important: HMRC tax months run from the 6th to the 5th of the following month. For example, tax month 1 is 6 April to 5 May. If you did not pay anyone during this period, submit an EPS by 19 June to tell HMRC.
How to Submit RTI Returns
RTI submissions are made electronically through payroll software. The process is typically automatic:
- Process your pay run in your payroll software
- The software calculates all deductions
- The software generates the FPS with all required data fields
- You authorise the submission (or it sends automatically, depending on your settings)
- The software transmits the FPS to HMRC via the Government Gateway
- HMRC sends an acknowledgement confirming receipt
Tip: Always check for HMRC acknowledgements after submitting. If a submission fails (due to data errors or connection issues), your software should alert you so you can correct and resubmit before the deadline.
RTI Penalties
HMRC applies penalties for late FPS submissions:[4]
| Number of Employees | Monthly Penalty |
|---|---|
| 1–9 | £100 |
| 10–49 | £200 |
| 50–249 | £300 |
| 250+ | £400 |
Additional penalties apply for filing more than 3 months late (5% of the tax/NI due) and for persistent non-compliance.
Frequently Asked Questions
What is the purpose of RTI?
RTI gives HMRC real-time visibility of employer payroll data. Before RTI, HMRC only received a summary at the end of the tax year. With RTI, HMRC knows what employees earn and what tax and NI is deducted as it happens. This allows faster detection of errors, more accurate tax codes, and better integration with Universal Credit.
Do all employers have to use RTI?
Yes. Every employer with a PAYE scheme must submit RTI returns. There are no exemptions based on size — even a single-director company with one employee must use RTI. The only employers who do not submit RTI are those with no employees on their payroll.
What software do I need for RTI?
You need HMRC-recognised payroll software capable of submitting RTI returns electronically. HMRC provides free Basic PAYE Tools for employers with up to 10 employees. Commercial options include Sage, Xero, QuickBooks, BrightPay, and many others. Your accountant or payroll bureau can also submit on your behalf.
What happens if I miss an RTI deadline?
HMRC charges monthly penalties for late FPS submissions: £100 for 1–9 employees, £200 for 10–49, £300 for 50–249, and £400 for 250+. The first late submission in a tax year is usually penalty-free. Late payment of the PAYE liability (separate from reporting) incurs interest and potential penalties of 1%–4% of the amount due.
Further Reading
- Full Payment Submission (FPS) — detailed guide to the FPS
- Employer Payment Summary (EPS) — when and how to submit an EPS
- Earlier Year Updates (EYU) — correcting previous-year data
- Aligning RTI with Pay Periods — matching pay runs to HMRC tax periods
- Key Payroll Dates Calendar — all RTI and payment deadlines
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Sources
- Running payroll — GOV.UK
- What payroll information to report to HMRC — GOV.UK
- PAYE and payroll for employers — GOV.UK
- Late filing penalties for PAYE — GOV.UK