Last updated: 16 October 2026
What is RTI?
Real Time Information (RTI) is the system employers use to report pay, tax and National Insurance to HMRC each time they pay employees. Every employer must send a Full Payment Submission (FPS) on or before each payday, and an Employer Payment Summary (EPS) when they need to claim allowances, reclaim statutory pay or tell HMRC no employees were paid. RTI replaced end-of-year P35 and P14 returns in 2013, so HMRC sees payroll information as it happens.
The main submissions
| Submission | When | Purpose |
| FPS | On or before each payday | Pay, tax, NIC and deductions for each employee |
| EPS | By the 19th after the tax month | Statutory pay recovery, Employment Allowance, nil payments |
| Earlier year update | After 19 April for earlier years | Corrections to earlier years (or use an FPS) |
What an FPS includes
- Employee details: name, date of birth, NI number, address
- Pay and deductions for the period
- Tax code and starting declaration for new starters
- Leaving date
- Student loan and postgraduate loan deductions
Paying HMRC
PAYE and NIC are due by the 22nd of the following month if paid electronically, or quarterly if the average monthly bill is under £1,500. Missing payments or late FPS submissions can lead to penalties.
Late filing penalties
| Number of employees | Monthly penalty |
| 1–9 | £100 |
| 10–49 | £200 |
| 50–249 | £300 |
| 250+ | £400 |
The first late month each tax year is usually not penalised. A three-day easement for late FPS applies at HMRC’s discretion.
Example
A café with eight staff pays weekly on Fridays. Its payroll software sends an FPS each Thursday. At month end, the owner sends an EPS to claim the £10,500 Employment Allowance and recover 109% of statutory maternity pay for one employee, as the business qualifies for Small Employers’ Relief. The amount paid to HMRC by the 22nd is reduced accordingly.
Changes coming
From April 2027, employers must payroll company cars, car fuel, vans, van fuel and medical benefits, with most other benefits following from April 2028, according to HMRC’s August 2026 Employer Bulletin. HMRC dropped its plan to collect detailed hours data through RTI in January 2025.
Common mistakes
- Sending an FPS after payday
- Not sending an EPS when no-one is paid
- Wrong starter information leading to emergency codes
- Forgetting the final FPS of the year
Records to keep
Keep payroll records for at least 3 years after the end of the tax year.
Who needs to use RTI?
Any employer paying someone at or above the lower earnings limit (£129 a week in 2026/27), or anyone with another job, a pension or expenses and benefits, must report through RTI. Even a one-person company paying a director salary needs a PAYE scheme and must send FPS returns. If you pay everyone below the lower earnings limit, you may not need to register, but you still need payroll records.
Year-end tasks
After the final FPS of the tax year, give each employee a P60 by 31 May. If you provide benefits not payrolled, file P11D and P11D(b) by 6 July. Then update tax codes for the new tax year and check the new National Minimum Wage rates, such as £12.71 for those 21 and over.
Frequently asked questions
Do I need software?
Yes, HMRC-recognised payroll software, including free options for under 10 employees.
What if I only pay directors annually?
Send an FPS when you pay and register as an annual scheme.
Is RTI the same in Scotland?
Yes, with Scottish tax codes.
Can I correct a mistake?
Yes, on the next FPS.
Related: do companies have to operate PAYE, casual workers on payroll and final payment submissions.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with RTI payroll reporting. See our payroll accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
