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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: real time information (RTI): reporting requirements

If any employee earns above the Lower Earnings Limit (LEL), RTI employers are required to submit information about payments to all employees, with details of deductions ‘on or before’ payment is made, including any employees who earn below the LEL.

For situations where an employer does not have to report PAYE information ‘on or before’ they pay an employee, see COG904230.

Employers who have no liable employees

  • do not need a PAYE scheme
  • are not required to operate PAYE
  • do not need to submit RTI returns.

Employers must register for PAYE and report under RTI where at least one employee

  • earns at or above the LEL
  • has another job.

Note: Where an employer has to report under RTI because at least one employee meets the above criteria, they must report information about payments made to all employees, including those paid below the LEL.

Under RTI employers are required to submit

  • a Full Payment Submission (FPS), see COG904240, and report for all employees

    • payments and deductions for the period the return relates to
    • total year to date pay and tax information
  • an Employer Payment Summary (EPS), see COG904240, where the employer

    • is entitled to recover Statutory Payments
    • has not made any payments to employees in the reporting period
    • is entitled to claim NIC compensation
    • is entitled to claim Employment Allowance
    • is a limited company subcontractor and is entitled to claim CIS deductions suffered
    • wishes to report a period of inactivity for up to 6 months because they do not expect to make any payments
  • an Earlier Year Update (EYU), see COG904240, when

    • an employer has not made a return ‘on or before’ a payment is made and the required details have not been provided in a later FPS by 19 April following the end of the tax year
    • an inaccuracy in an FPS has not been corrected in a later FPS by 19 April following the end of the tax year
    • the employer becomes aware of an inaccuracy on or after 20 April in the following tax year.

Employers are not required to provide a summary of payment liabilities due on the FPS.