Real-Time Information – Part 4 – When to report your payroll information

Almost all employers have to report their payroll information online to HMRC when or before any employee is paid.  The information provided includes details of the employer, details of the employees, and their pay and deductions.

You may also have to report summary information about statutory payments recovered and other deductions in a pay period and if you don’t pay anyone in a pay period.

You will have to report end of year information at the end of the tax year.

Payments to employees

Every time you pay an employee be it as part of the normal pay cycle, or an additional payment, you must send a Full Payment Submission (FPS) to advise HMRC how much you have paid them and what deductions you have made for PAYE tax and National Insurance Contributions.  You must send this information when or before payment is made.

If you have a mix of weekly and monthly payments you should send a FPS to HMRC each time you make a payment but only to cover the employees paid.  If no-one has been paid in the tax month you must send an Employer Payment Summary (EPS).

Summary of statutory payments recovered, CIS deductions and NICs Holidays

A FPS only shows information about specific employees therefore you will need to submit an EPS to show how much you can recover in relation to statutory payments, NICs holidays and CIS deductions suffered.

Once you send a EPS HMRC can offset the amounts you wish to recover against payments you are due to make.  Therefore if you want deductions to apply to a specific month you should send your EPS before payment to HMRC is due on the 19th of the following month.  If you operate a mix of weekly and monthly payroll payments on the same PAYE scheme you must send one EPS to cover the whole PAYE scheme.

End of Year Information

When you send the final payroll report before 5 April – whether it is a FPS or EPS – you need to ensure that you have completed the end of year questions and declarations.  If you run a mix of weekly and monthly payroll payments you should include the end of year information on whichever report (FPS or EPS) is the last for the year regardless of which payroll or employees it relates to.

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