Real Time Information is the way employers report pay and deductions to HMRC through payroll. Reporting and paying the resulting liability are separate tasks.
Accurate employee information is essential. Mistakes can affect both the employer’s records and the information used for an employee’s tax or benefit position.
Prepare the payroll
Check names, dates of birth and National Insurance details against reliable information. Obtain starter information, record leavers and use the appropriate indicators for irregular payments.
Do not invent missing identifiers or assume that submitting payroll updates every part of an employee’s HMRC record.
Use the appropriate submission
A Full Payment Submission reports pay and deductions and normally needs to be sent on or before payday. Follow the current FPS guidance for payment dates, additional payments and exceptions.
An Employer Payment Summary is used for relevant adjustments and other required notifications, including certain periods without employee payments. Check when it is needed rather than treating it as a substitute for the payroll report.
An annual payroll arrangement must meet the relevant conditions. Paying a director infrequently does not automatically remove reporting obligations.
Reconcile and correct
Compare submitted totals with payroll records and the amount due to HMRC. If something is wrong, use the current correction procedure; the method depends on the error and period.
Keep starter and leaving documents, submission acknowledgements and supporting pay records. Complete year-end reporting and employee documents as required.
Keep CIS separate
Payments to genuine subcontractors under CIS have their own reporting process. Companies suffering CIS deductions may need an appropriate payroll adjustment, but this does not turn subcontractor payments into employee wages.
Agree who provides changes, approves the payroll and checks that submissions were accepted.