What does RTI mean?
Real time information (RTI) was introduced In April 2012 by HMRC but only became compulsory for employers to report in real time by April 2013. Employers must submit an RTI to HMRC every time you pay your employees, whether it be weekly, bi-weekly or monthly.
There are two types of submissions that need to be made dependant on if you’ve paid your employees or have not for the month, called full payment submission and employer payment summary.
Full payment submission
Full payment submissions (FPS) are used to tell HMRC how much you’ve paid your employees and if you’ve had to make any deductions e.g., sick pay, holiday pay etc…
This must include everyone that you pay and you must complete this form on or before the date you pay your employees. If you have any new employees, you must tell HMRC and accept their P45 or sign them up on a new employee form. As for any periodic staff, you must submit information for them also every time they get paid.
For more information on P45s or how to tell HMRC about new employees visit Gov.uk.
Employer Payment Summary
The employer payment summary (EPS) is submitted to HMRC when you need to make changes to the current FPS, or if you have not paid any employee/s for the tax month.
It is important to make sure your RTI’s are sent off on time, every time. To avoid making mistakes and facing penalties, it is evident to outsource payroll. Here at A2Z we submit RTI submissions for you, included in our monthly price. We use integrated RTI software which helps us ensure that your business will be RTI compliant. We ensure that your data is sent off accurately, on time with no mistakes.
Why you shouldn’t miss submissions
If you are late sending your RTI submissions, whether you sent off an incorrect number of FPS’ or if you’ve forgotten to notify HMRC about a new employee or if you didn’t pay any employees, you will be fined. If you continuously forget to send your submissions to HMRC, you will receive penalty strikes and your fine will increase each time. The table below shows the fine you will receive in accordance to the size of your business.
| Number of employees | Monthly Penalty |
|---|---|
| 1-9 | £100 |
| 10-49 | £200 |
| 50-249 | £300 |
| 250+ | £400 |
For more information on HMRC fines and penalties visit Gov.uk.
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