What is RTI (Real Time Information)?
Real Time Information (RTI) is the system UK employers use to report employees' pay, tax and National Insurance to HMRC every time they are paid.
What RTI means
Before 2013, employers reported payroll to HMRC once a year. Under Real Time Information they report every time staff are paid, so HMRC sees pay and deductions as they happen. This feeds employees' personal tax accounts, their tax codes and benefits such as Universal Credit.
RTI uses two main submissions:
- Full Payment Submission (FPS): sent on or before payday, listing each employee's pay, tax, National Insurance and other deductions.
- Employer Payment Summary (EPS): sent by the 19th of the following tax month to claim the Employment Allowance, recover statutory pay, or tell HMRC that no employees were paid in a month.
Example
A marketing agency pays its staff on the last working day of each month.
| Submission | Deadline | What it contains |
|---|---|---|
| FPS for October pay | On or before 30 October | Pay and deductions for each employee |
| EPS for the tax month to 5 November | 19 November | Employment Allowance claim and £600 of statutory paternity pay to recover |
| Payment to HMRC | 22 November | PAYE and NI due, after the EPS recoveries |
If a new starter joins mid-month and is paid on a different date, their details still go on an FPS on or before that payment.
Why it matters for your business
Late FPS submissions attract monthly penalties based on the size of the payroll: £100 for 1 to 9 employees, £200 for 10 to 49, £300 for 50 to 249 and £400 for 250 or more. HMRC does not usually charge for the first late month in a tax year, but repeated delays add up quickly.
Because the data flows straight to HMRC and to employees' online records, mistakes affect people directly. A wrong tax code or a missed leaver can lead to underpaid tax, an incorrect P60 or a delayed benefit payment. Directors paid through a company payroll need RTI too, even if they are the only person on it.
RTI and the P60 and P45
RTI did not replace the documents employees receive. Staff still get a P60 by 31 May after each tax year and a P45 when they leave. The final FPS of the tax year, marked as the last submission, is what closes the payroll year. Cloudkeepers handles RTI submissions for clients as part of every payroll run.
Common questions
Send an Employer Payment Summary by the 19th of the following tax month to tell HMRC that no payments were made. Without it, HMRC may estimate what you owe and chase you for it. You can also report several months of nil payments in advance if you know nobody will be paid.
Yes, if you pay yourself a salary through the company payroll. Many sole directors are paid once a year or monthly. If you only pay once a year, you can register as an annual scheme so you only send an FPS in the month you pay, and HMRC does not expect monthly nil returns.