Employment Tax

Real time information

Produced by Tolley in association with Vince Ashall
  • 01 Apr 2022 14:42

The following Employment Tax guidance note Produced by Tolley in association with Vince Ashall provides comprehensive and up to date tax information covering:

  • Real time information
  • Full payment submission
  • Passport number
  • Starter declaration
  • Irregular employment pattern indicator
  • Number of normal hours worked indicator
  • Pay after statutory deductions
  • Late PAYE reporting reason
  • Employer payment summary
  • Other communications
  • More...

Real time information

Real time information (RTI) is the method by which employers communicate employees’ earnings and PAYE deductions to HMRC, unless an exemption from electronic filing can be claimed. See the Setting up a payroll guidance note.

The term ‘employers’ in the RTI context also includes pension payers. Thus, employers who pay their own pensioners (possibly via a specific pensioners’ payroll) need to comply with the RTI regulations, as does the Department of Work and Pensions (DWP).

Similarly in the RTI context, ‘employees’ includes pensioners. This includes pensioners paid by their ex-employers, pensioners paid by financial institutions such as insurance companies on behalf of the ex-employers and pensioners in receipt of the basic and additional state pensions and the new single tier state pension.

There are penalties for failure to file the necessary RTI returns. See the RTI penalties guidance note.

RTI replaced the previous year-end process and also changed the previous P45 / P46 in-year processes. Using the old terminology, RTI can be described as ‘P14+’ in that the main RTI return contains all the details previously found on the year-end P14 plus extras; the main extras are the details of the payments made to employees in the current pay period.

The main RTI returns are described below.

Full payment submission

The full payment submission (FPS) is the normal return that employers must make to HMRC. It needs to be sent in respect of each pay period to be received by HMRC shortly before or at the time that payment is made to the employees.

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