What is RTI?
RTI stands for Real Time Information, the system that has governed payroll reporting since 2013. Instead of one big annual return, HMRC receives a digital report every time you pay your staff. That report drives everything from employee tax codes to Universal Credit awards, which is why filing accurately and on time matters so much.
The FPS: your main payday report
The Full Payment Submission lists every employee paid, their gross pay, Income Tax, National Insurance, student loan and pension deductions, plus starter and leaver information. It must reach HMRC on or before the date employees are paid, not the end of the month. Pay weekly and you file weekly; pay monthly and you file monthly. The FPS must be sent even where everyone earns below the tax and NI thresholds.
The EPS: adjustments and claims
The Employer Payment Summary is sent by the 19th of the following tax month when you need to reduce what you owe or report something the FPS cannot. Common uses include reclaiming 92% or 109% of statutory maternity, paternity, adoption and other family payments, claiming the £10,500 Employment Allowance at the start of the year, and reporting a no payment period. If you never send the relevant EPS, HMRC's account for you will show more owing than you expect.
Deadlines and late filing penalties
Late or missing FPS filings attract automatic monthly penalties based on scheme size: £100 for 1 to 9 employees, £200 for 10 to 49, £300 for 50 to 249 and £400 for 250 plus. HMRC currently allows a 3 day grace period and excuses the first default each tax year, but persistent lateness gets expensive quickly. Payment of the liability itself is due by the 22nd of the following month electronically. Our guide to payroll deadlines and penalties sets out the full calendar.
Fixing mistakes
Discover an error in the same tax year and you simply correct the figures on your next FPS, because RTI reports year to date values. Wrong payment date or a missed submission is more serious, as it can trigger penalties and affect employees' Universal Credit. Errors relating to an earlier closed tax year are corrected by submitting an additional FPS for that year with the revised year to date figures.
Practical tips for staying compliant
Run payroll at least a day before payday so there is time to fix validation errors. Keep your PAYE and Accounts Office references handy, reconcile what HMRC's online account shows against your software every month, and if you change payroll software mid year, carry the year to date figures across carefully. If RTI is eating time you do not have, our payroll service files every FPS and EPS for you on a fixed fee.
Frequently asked questions
What is the difference between an FPS and an EPS?
The FPS reports what you actually paid each employee and the deductions made, and is sent on or before every payday. The EPS reports things the FPS cannot, such as reclaiming statutory maternity pay, claiming the Employment Allowance or telling HMRC no one was paid that month.
What happens if I send my FPS late?
HMRC charges monthly penalties of £100 for schemes with 1 to 9 employees, £200 for 10 to 49, £300 for 50 to 249 and £400 for 250 or more. Your first late filing in a tax year is normally excused, and submissions within 3 days of payday are not currently penalised.
Do I need to file anything if I did not pay anyone?
Yes. Send an EPS showing a period of inactivity by the 19th of the following tax month, otherwise HMRC estimates what you owe and chases the estimated debt.