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HMRC internal manual

National Insurance Manual

Class 1 NICs: reporting NICs in RTI: paper filers

Social Security (Contributions) Regulations 2001, Schedule 4, Paragraph 21D

There are special arrangements to allow specific employers to operate RTI using paper returns from April 2014.

Legislation defines which employers may file using an RTI paper channel. These employers are:

  • care and support employers
  • individuals who are practising members of a religious society or order whose beliefs are incompatible with the use of electronic equipment (or a partnership or company where this applies to all partners or directors)
  • employers who have been given specific direction from HMRC

‘Care and Support employer’ means an individual who employs someone to provide domestic or personal service in their home to either them or a member of their family who has a physical or mental disability, or is elderly or infirm. It must also be the employer who makes the return (not someone on their behalf).

From April 2014

Paper filers must:

  • complete a paper deductions working sheet (form RT11) and deduct NICs, if appropriate, when a payment of earnings is made
  • complete a paper FPS (form RT2), and send it to HMRC each tax quarter
  • complete a supplementary FPS (form FPS3) if more complex data is needed, for example if the employee is a director
  • complete a paper EPS (RT5) to report any adjustments to the amounts due, e.g. for statutory payments