For an employer, learning how to submit RTI is one of those payroll jobs that sounds more complicated than it needs to be. RTI, or Real Time Information, is simply the way you tell HMRC what you have paid employees and what deductions you have made. Get the process in place once, and it becomes a manageable part of every pay run rather than a last-minute compliance worry.
The key is to send the right information at the right time. Your payroll software usually does most of the calculation and reporting work, but you remain responsible for checking the figures and making sure submissions are not missed.
What RTI means for your business
Under PAYE, employers must report pay, Income Tax, National Insurance and other deductions to HMRC electronically. This reporting is called RTI because it is sent as employees are paid, rather than being held back until the end of the tax year.
For most small businesses, there are two RTI submissions to understand: a Full Payment Submission, known as an FPS, and an Employer Payment Summary, known as an EPS. You will normally send an FPS whenever you pay staff. An EPS is only needed in particular circumstances, such as when you have no employees to pay for a tax month or need to report statutory payment recovery.
RTI applies whether you employ one person or a growing team. It also applies if you pay yourself through a limited company payroll. CIS contractors have additional reporting duties, but their payroll reporting still needs to be handled accurately.
Before you submit RTI for the first time
You need to register as an employer with HMRC before your first payday. HMRC will provide a PAYE reference and an Accounts Office reference. Your payroll software needs both, so keep them somewhere secure and easy to find.
You will also need accurate employee details. That includes their full name, date of birth, address, National Insurance number where available, and starter information. The tax code and starter declaration matter too, because they affect how much tax is deducted. Guessing or carrying over details from a previous employer can lead to incorrect pay and avoidable corrections later.
Choose payroll software that is recognised by HMRC and suitable for the way you work. For a straightforward monthly payroll, this may be a simple cloud system. If you have varied hours, statutory payments, pension deductions or CIS workers, you may need more capable software or support from a payroll provider. The best option depends on the size and complexity of your team, not on having the most features.
Before processing live pay, check that the pay frequency is correct. Monthly, weekly and four-weekly payrolls all have different schedules, and the submission deadline follows the actual payment date.
How to submit RTI using an FPS
An FPS tells HMRC what each employee has earned and what has been deducted in that pay period. It should be submitted on or before the day you pay your employees. This is the most important RTI deadline to remember.
Start by entering each employee’s hours, salary, overtime, commission, bonuses, holiday pay and any other taxable payments into your payroll software. Add deductions such as pension contributions, student loan repayments, attachment orders or salary sacrifice arrangements where relevant. The software should calculate PAYE tax, employee National Insurance and employer National Insurance from these details.
Before you finalise the payroll, take a moment to review it. Check that every employee due to be paid is included, that leavers have been processed correctly, and that unusual changes in net pay have an explanation. A rushed review can be costly. For example, an extra zero on overtime or an incorrect tax code can affect both your employee and the figures reported to HMRC.
Once you are satisfied, create and send the FPS through the payroll software. Most systems will show a confirmation or submission reference when HMRC has received it. Save this alongside your payroll reports. If the software shows an error or rejection, do not assume the submission has gone through. Read the message, correct the problem and resend it before the deadline where possible.
After submitting, give employees their payslips and pay them on the date shown in the FPS. The date on the report should match the date they are actually paid. Sending an FPS early is usually fine, provided the payment date recorded is correct. Sending it late, however, may trigger a late filing notice or penalty.
When you need to send an EPS
An Employer Payment Summary is not part of every payroll run. It is used to tell HMRC about amounts that alter what you owe, or to confirm there was no payment to report.
Common reasons to send an EPS include claiming eligible statutory payments, reporting Employment Allowance, or telling HMRC that no employees were paid for a full tax month. You may also use one where you need to report certain other adjustments.
If you have not paid anyone in a tax month and do not send an EPS, HMRC may assume an FPS is missing and issue a reminder. This catches out seasonal businesses, directors’ companies that only run payroll occasionally, and employers who pause trading for a short period. If you expect not to pay employees for several months, your payroll software may allow you to set this up in advance.
The EPS deadline is normally the 19th of the following tax month if it affects the amount you owe. Sending it promptly helps ensure your PAYE bill is correct before payment is due.
Paying HMRC after your RTI submission
Submitting RTI reports and paying HMRC are separate jobs. The FPS and EPS tell HMRC what is due; you still need to make the payment.
For most employers, PAYE and National Insurance payments must reach HMRC by the 22nd of the following tax month if paying electronically. If you pay by post, the deadline is earlier. Smaller employers may be able to arrange quarterly payments, but this is not automatic, so check whether you qualify before changing your routine.
Your payroll reports should show the amount due, but it is worth comparing this with your HMRC account, particularly after sending an EPS or correcting a previous pay run. Build the payment date into your cash flow plan. Payroll taxes are not spare business funds, even when a customer payment is late.
Fixing mistakes and late RTI submissions
Mistakes happen, especially when payroll is handled between busy client work, staffing changes and day-to-day business admin. The important thing is to correct them properly rather than trying to hide them in a later pay run.
If you notice an error before paying staff and before submitting the FPS, amend the payroll and send the corrected figures. If you have already sent the FPS but not paid employees, the right approach can depend on the software and the nature of the error. Check the software guidance or speak to a payroll professional before making duplicate submissions.
If an employee was overpaid or underpaid after payday, you may need to adjust a future payment, but take care with deductions from wages. The payroll records and RTI position should reflect what has actually happened. For previous tax years, correction rules can differ, so avoid assuming that a current-year fix will be enough.
Where an FPS is late, submit it as soon as possible. Your software may ask for a late reporting reason. Use one only where it genuinely applies. A late filing penalty is not always issued for a one-off problem, but relying on that is not a sensible payroll process.
A simple routine for stress-free RTI reporting
The easiest way to stay on top of RTI is to treat payroll as a short, repeatable monthly or weekly process. Gather timesheets and pay changes before a set cut-off date, process the draft payroll, review unusual figures, submit the FPS on or before payday, then schedule the PAYE payment. Keep payroll reports, submission confirmations and employee records together for your records.
It is also sensible to make one person clearly responsible for each step. In a small business, payroll often becomes “someone’s job when they have time”, which is where deadlines get missed. If the business owner approves pay but someone else processes it, agree who checks the final figures and who confirms the submission has been accepted.
Outsourcing can be particularly helpful when your team changes regularly, you run CIS payroll, or you simply do not want the worry of compliance deadlines sitting on your desk. Angel Bookkeeping & Payroll Services can provide practical, friendly support with payroll processing and RTI reporting, while you retain clear visibility of what is being paid and why.
A reliable RTI routine is not about becoming a payroll expert overnight. It is about using accurate information, allowing enough time before payday and asking for help when something does not look right. That gives you the confidence to pay your people correctly and keep your business on the right side of HMRC.