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HMRC internal manual

National Insurance Manual

Class 1 NICs: reporting NICs in RTI: general information

Social Security (Contributions) Regulations 2001 Schedule 4, para 21A

From April 2013, HMRC introduced reporting of Pay As You Earn (PAYE) and National Insurance Contributions (NICs) in “Real Time”, known as Real Time Information (RTI).

For information about reporting Class 1 NICs prior to (RTI), see NIM11005.

Some employers started operating under RTI as part of a pilot during 2012 to 2013 tax year. Others were given later migration dates. For more information about the pilot see NIM11510.

Under RTI, employers report earnings, PAYE and NIC information to HMRC on or before the time they pay their employees instead of completing an annual return of PAYE and NICs. As part of their payroll process, payroll software collects the information and sends it to HMRC electronically.

The introduction of RTI did not change the way NICs are calculated and deducted - see NIM01000CO.

Employers are still required to prepare and maintain a deduction working sheet (or equivalent) where required under Para 6(1) Social Security (Contributions) Regulations 2001 Schedule 4, See NIM11001.

End of Year

There is no need for an RTI employer to prepare end of year returns, the final FPS or EPS includes an indicator that this is the final return and various declarations. At the end of the tax year, the year to date (YTD) data from the final FPS (Full Payment Summary) for each employment is used to create the record of earnings and contributions on NPS.

RTI changed employers’ obligations as follows:

  • when they report earnings and NICs, NIM11520 
  • what data they report, NIM11525,

For more information about RTI employers, see NIM11515 

Information about PAYE and RTI can be found in the PAYE manual at PAYE5001.

Some RTI employers who meet specific requirements can report under RTI via a paper channel, see NIM11565.