Real Time Information (RTI) is the HMRC payroll reporting framework introduced in April 2013, replacing the previous annual P35 and P14 returns. Under RTI, employers must submit a Full Payment Submission (FPS) on or before the date they pay each employee. The FPS includes employee identifiers, the payment date, gross pay, income tax deducted, employee and employer National Insurance Contributions, and cumulative year-to-date totals for each worker on the payroll. HMRC uses this data to update individual tax accounts in near-real time, enabling more accurate tax coding and faster detection of errors.
Where an employer has nothing to report in a pay period or wishes to claim reductions (such as statutory payments or the Employment Allowance), they submit an Employer Payment Summary (EPS). The EPS also carries the year-to-date figures that reduce the employer's PAYE liability before payment is made to HMRC. Employers who operate monthly payroll must ensure their FPS reaches HMRC by the last calendar day of the tax month (5th to 4th) to avoid a late-filing indicator.
Penalties apply for late or missing FPS submissions on a monthly basis, ranging from £100 for one to nine employees up to £400 for 500 or more employees, with a further 5% tax-geared penalty after three months of continued non-compliance. HMRC also uses RTI data to identify employers who have failed to pass on deductions, making timely and accurate submissions a core component of payroll governance and HMRC compliance.