This article will help distinguish what information is being submitted through RTI and when the submissions should be used.
Firstly, RTI stands for Real Time Information and this is the blanket name for the submissions that are filed with the HMRC. The three common submissions are:
- Full Payment Submission (FPS)
- Employer Payment Summary (EPS)
- Earlier Year Update (EYU)
Full Payment Submission
The FPS is a required submission on a period by period basis (whether this is set to weekly, fortnightly, four weekly or monthly), this means that you are required to send this submission every time that you process a positive value of pay to an employee. The following information is included on every FPS that you send:
- The tax year to which the FPS relates.
- Employee PAYE details (such as pay date, gross pay to date, tax to date, tax code and other deductions, etc.)
- Employee NI contributions.
- Starter/Leaver information.
- Student loan indicators.
- Pension details.
Employer Payment Summary
An EPS is only required if you have a reason to submit the information held within this report. The following examples are generally the main reasons as to why you would submit an EPS:
- To declare the recovery and compensation of statutory absences (SSP not included).
- To declare CIS (Construction Industry Scheme) deductions suffered.
- If you have not paid any of the employees within the tax month.
- Ceased trading dates.
- To declare that the Employers NI Allowance scheme is being used (only one submission is necessary).
- Charges for the Apprenticeship Levy
There have been situations where support have spoken to 12Pay users that believe an EPS is to be sent to declare the tax and NI deductions of employees, this is incorrect as this information will be sent in the Full Payment Submission. If you attempt to send an EPS and an error message appears stating that ‘A blank EPS cannot be filed’ then it’s highly likely that you do not have reason to file this submission.
Earlier Year Update
The deadline for FPS submissions for the related tax year is April 19th, therefore if you have missed this deadline or you have submitted the wrong information to the revenue then you are required to file an EYU to adjust the figures with the HMRC. The EYU is purely an adjustment tool to be used for the previous tax year after the year end and would not be used in any other circumstance. The following information can be submitted on an EYU:
- Taxable pay.
- NI contributions.
- NI table letter code.
- Statutory payments made to the employee.
- Benefits taxed.
- Pensions with or without relief.
What the EYU will not submit:
- Leave dates.
- Ceased trading dates.
- Recovery/compensation of statutory payments.