Learn more about the mandatory RTI submissions to HMRC, including the required data, submission window, and required submission method.
The topics that will be discussed are listed below.
What do the abbreviations RTI stand for?
Real-Time Information (RTI) refers to the process through which some payroll information is provided electronically to HMRC.
What is an RTI?
In an RTI report, payroll information such as employee salaries and deductions are included. It is essential that HMRC receives this update so that everyone’s tax information is accurate and everyone is aware of how much money will be received from the government.
Before 2013, this information was only given annually. A more frequent release schedule was introduced in that year. Since the implementation of RTI submissions, this information must now be sent to HMRC each time an employee is paid. Despite the additional labour, this is expected to result in better accurate tax codes for workers due to the accessibility of data. This will raise the probability that they will make accurate tax payments.
When does the RTI return have to be submitted?
It must be submitted either on or before the date you pay your staff.
What Kinds of Information Should You Anticipate Finding in an RTI Report?
To submit RTI data to HMRC, submitters must complete out multiple web forms, each of which demands unique information. The two most important RTI submission components are the EPS and the FPS. The FPS stands for Full payment submission and EPS for Employer payment summary.
Full Payment Submission Report (FPS)
Since the FPS must be completed each time an employee is paid, it is the most common form of submission for firms. For each employee getting a pay check, the FPS maintains complete information, including the employee’s:
- Information that can be used to identify you, such as your name and social security number; your taxpayer identification number; the amount of time you spent preparing your taxes; a breakdown of your taxable income for the applicable time periods
- Pension, income tax, national insurance, student loans, and the type of student loan scheme;
- Includes maternity and paternity pay. a wage that is required by law to be paid. legal compensation.
- In addition to the aforementioned data, the FPS contains information about employees who began and ended their employment during the reporting period. This indicates that the P45 and P46 forms can be discarded. The law still requires that all departing employees receive a copy of their P45 before leaving.
An FPS must be submitted whenever an employee receives pay, regardless of how frequently they are paid (weekly, fortnightly, monthly). This criterion applies regardless of the frequency of payments. If payroll is prepared in advance, they can be filed early; however, care must be made to document all changes to avoid filing an FPS correction. If the payroll reports are produced in advance, they can be submitted before the employees are paid.
Employer Payment Summary (EPS)
To receive a refund from HMRC for payments such as the following, it is necessary to submit an EPS to HMRC by the 19th of each month.
- Maternity pay for moms.
- Paternity, adoption, and shared parental leave.
- If no FPS is reported for a particular tax period, an EPS must be filed to advise HMRC that there are no active employees. In the absence of such notification, HMRC may charge a failure-to-file-an-FPS penalty.
Correction of an RTI
If you discover an error in your payroll after submitting the Full Payment Submission (FPS) to HMRC (for example, you entered the wrong amount of pay or omitted an employee’s leaving date), you must submit the correct Year to Date figures, along with any updated employee information, in your next regular FPS. Payroll errors detected after submitting the Full Payment Submission (FPS) to HMRC will demand the submission of a rectified FPS.
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