Real Time Information (RTI) explained

What RTI is

Real Time Information (RTI) is HMRC's system for reporting payroll. Employers must submit information on or before each pay date — not after the fact. It replaced the old end-of-year P35 with a continuous flow of submissions.

The Full Payment Submission (FPS)

The FPS is the main RTI report. You submit it through your payroll software on or before each pay date and it includes:

• Each employee's gross pay, tax deducted, and NI deducted
• Year-to-date figures
• Tax codes used
• Any starters and leavers since the last FPS
• Statutory payments (sick pay, maternity pay, etc.)

Submitting the FPS late triggers automatic penalties — typically £100 per month for small employers, more for larger ones.

The Employer Payment Summary (EPS)

The EPS is for adjustments and exception cases. Submit one when:

• You're claiming Employment Allowance
• You've recovered Statutory Maternity, Paternity, or Sick Pay
• You have CIS deductions to offset against PAYE
• You owe nothing for a tax month (a "no payment" EPS)

Year-end

On the final FPS of the tax year, mark it as the final submission. Then issue P60s to all employees still employed on 5 April by the following 31 May. P11Ds (for taxable benefits) are due by 6 July.

Common RTI mistakes

• Submitting FPS after the pay date
• Wrong tax code used (HMRC sends notice via PAYE Online — don't miss them)
• Missing leaver dates — keeps employee on the system longer than needed
• Year-end "final FPS" flag forgotten
• P60s not issued by 31 May