Business tax – guidance

What payroll information to report to HMRC

If you're paying employees through PAYE, find out what to put in your Full Payment Submission (FPS) and Employer Payment Summary (EPS).

As an employer running payroll, you should report your employee’s pay and deductions in an FPS on or before their payday (unless an exception applies).

You should also send an EPS by the 19th of the following tax month for HM Revenue and Customs (HMRC) to apply any reduction (eg statutory pay) on what you’ll owe from your FPS.

If you’ve not paid any employees in a tax month, send an EPS instead of an FPS.

Your payroll software may have different names for the fields below.

Employer information

Report these in every FPS and EPS.

Field Description
HMRC office number The first part of your employer PAYE reference (3 digits) - this is on the letter HMRC sent you when you registered as an employer. You can also find it on P6 or P9 coding notices
Employer PAYE reference The second part of your employer PAYE reference (the letters and numbers after the slash)
Accounts Office reference Format ‘123PA00012345’ - you’ll get this from HMRC after you’ve registered as an employer. It’s also on letter P30B if you pay electronically, or payment booklet P30BC if you don’t
Related tax year The income tax year that this report relates to

Include these if they apply to your business.

Field Description
Employer’s Contracted Out Number (ECON) Get this from your contracting-out certificate or pension scheme adminstrator
SA UTR Your unique taxpayer reference (UTR) for Self Assessment (SA) if you’re a sole trader, or the partnership UTR if you’re a partnership
COTAX reference Your Corporation Tax reference, if you’re a limited company. If you have more than 1, enter the reference for the company responsible for employment contracts

Employee information

Report this information in an FPS every time you pay an employee.

Field Description
National Insurance number The employee’s National Insurance number. Leave blank if you don’t know it, but make sure you enter their address
Title  
Surname or family name  
Forename or given name  
Second forename or given name  
Initials Only needed if you don’t know their full forename(s)
Date of birth  
Gender  
Address Only enter their address if they’re a new employee or you don’t know their National Insurance number
UK postcode  
Foreign country Only enter their country of residence if they live outside the UK, Channel Islands or Isle of Man. Also complete the ‘Address’ field
Payroll ID You can assign payroll IDs to your employees. Use a different ID if you re-employ someone in the same tax year they left, or if an employee has more than one job in the same PAYE scheme
Payroll ID changed indicator Only put ‘Yes’ if their payroll ID has changed since the last FPS, and give both the new and old IDs. Don’t put ‘Yes’ if you used a different payroll ID when you re-employed someone who left in the same tax year
Old payroll ID for this employment Only enter their old ID if it’s changed since your last FPS. You mustn’t complete this if you are re-employing someone. If you don’t supply it, and they have more than 1 job in your PAYE scheme, contact HMRC - your PAYE bill may be calculated incorrectly
Irregular payment pattern indicator Only put ‘Yes’ if the employee isn’t being paid regularly (eg they’re a casual employee or on long-term sick leave) or if you’re not going to pay them for 3 months or more

Pay and deductions

Report information about each employee’s pay and deductions in an FPS.

Pay and deductions made this period

Field Description
Taxable pay The total pay to the employee that is taxable (even if tax is not due) in this period, including any benefits in kind which you have taxed via the payroll
Tax deducted or refunded  
Student loan deductions recovered  
Pay after statutory deductions Their net pay after you’ve deducted tax, National Insurance contributions (NICs) and student loan repayments. Don’t include payments you’re including in ‘Non-tax or NIC payment’
Deductions from net pay Any other deductions you’ve taken eg Payroll Giving donations and child maintenance payments (don’t include tax, NICs and student loan repayments)
On strike Only put ‘Yes’ if you reduced your employee’s pay because they were on strike
Non-tax or NIC payment Any payment this period that isn’t subject to tax or NICs - this can also apply to payrolled benefits

Year to date totals

Field name Description
Taxable pay to date The total taxable pay to date in this employment only, including any benefits that have been taxed through the payroll, including this payment
Total tax to date  
Total student loan repayment recovered to date  

If you’ve employed the same person more than once in a tax year, report for their current employment only.

Pension deductions

Field Description
Employee pension contributions  
Employee pension contributions year to date  
Employee pension contributions not paid under a ‘net pay arrangement’ Contributions taken from their pay after deducting tax and NICs in this period
Employee pension contributions not paid under a ‘net pay arrangement’ year to date Contributions taken from their pay after deducting tax and NICs so far this tax year

Statutory maternity, paternity and adoption pay

Field Description
Statutory Maternity Pay (SMP) year to date  
Ordinary Statutory Paternity Pay (OSPP) year to date  
Statutory Adoption Pay (SAP) year to date  
Additional Statutory Paternity Pay (ASPP) year to date  
ASPP: Partner surname or family name Only put this when you report ASPP for the first time for this employee
ASPP: Partner forename or given name Only put this when you report ASPP for the first time for this employee
ASPP: Partner second forename or given name Only put this when you report ASPP for the first time for this employee
ASPP: Partner National Insurance number Only put this when you report ASPP for the first time for this employee

If you pay benefits through payroll

Enter this information if you’ve agreed with HMRC to tax benefits through payroll, instead of reporting in the normal way.

Field Description
Items subject to Class 1 National Insurance only  
Benefits this period taxed via payroll Also include this in ‘Taxable pay in this period’
Benefits taxed via payroll year to date  

Employee pay information

Report details of each payment you make an employee in an FPS.

Field name Description
Employee tax code  
Employee tax code: Week 1 / Month 1 indicator Only put ‘Yes’ if their tax code has ‘W1’ or ‘M1’ at the end
Employee hours normally worked Put ‘A’ if less than 16 hours, ‘B’ if 16 to 23.99 hours, ‘C’ if 24 to 29.99 hours, or ‘D’ if 30 hours or more. Put ‘E’ if you don’t pay your employee regularly or you pay them a workplace pension or annuity
Pay frequency Put ‘W1’ if weekly, ‘W2’ if fortnightly, ‘W4’ if every 4 weeks, ‘M1’ if monthly, ‘M3’ if quarterly, ‘M6’ if twice a year, ‘MA’ if annually, ‘IO’ if a one-off payment, or ‘IR’ if you pay your employee irregularly
Payment date The date you paid them, not the date you run your payroll. Use the normal payday if it falls on a non-banking day
Tax week number The week you paid them if you pay them weekly, fortnightly or every 4 weeks
Tax month number The month you paid them if you pay them monthly, quarterly, twice a year or annually
Number of earnings periods covered by payment  
Bacs hash code Only put this if you’re paying them through Bacs using your own Service User Number (SUN)
Aggregated earnings indicator Only put ‘Yes’ if you’ve added the earnings from more than one job to work out their National Insurance

Late reporting reason

If you send an FPS after your employee’s payday, let HMRC know why in the ‘Late reporting reason’ field.

HMRC code Situation When to report
G You have a reasonable excuse As soon as possible
H You correct an earlier payroll report by sending an extra FPS Before your next regular FPS. Send by the 19th of the tax month after your original FPS for HMRC to show the correction in that month’s PAYE bill
F You have an employee who’s either paid less than £112 a week or has worked with you for less than a week Within 7 days of paying your employee
D You pay your employee an expense or benefit where you must pay NICs, but not Income Tax, through payroll. This depends on the benefit. Within 14 days of the end of the tax month
F You pay your employee based on their work on the day (eg harvest workers paid based on how much they pick) Within 7 days of paying your employee
E You’re an existing small employer with fewer than 10 employees, and you’re exempt from reporting every time you pay them On or before the last payday of the month
A You’re an overseas employer paying an expat employee, or you pay them through a third party By the 19th of the tax month after making the payment
B You pay your employee in shares at less than market value Usually by the 19th of the tax month of giving them the shares - contact HMRC for complex situations
C You make any other non-cash payment (eg vouchers or credit tokens) to your employee By the 19th of the tax month after making the payment

If HMRC disagrees or you don’t send an FPS or EPS, they may send you a filing notice through PAYE Online or your commercial payroll software package. Penalties for late reporting started from 6 October 2014.

National Insurance

Include information about National Insurance in your FPS when you pay an employee £112 or more a week.

For employees paid less, you only need to include this information if you’re not required to report their earnings for tax (eg you’re an overseas employer that doesn’t need to pay tax in the UK).

Field Description
NI category letter Your employee’s National Insurance category letter. You can use up to 4 for each payment
Gross earnings for NICs in this period The total pay that’s subject to NICs this period - usually all payments £112 a week or over. Also include pay below this if you’re not required to report it for tax
Gross earnings for NICs year to date The total pay subject to NICs this tax year
Earnings at the Lower Earnings Limit (LEL) year to date The total pay at £112 a week (£486 a month) or over. Don’t include any smaller payments, even if you’re not required to report it for tax
Earnings above LEL up to and including the Primary Threshold (PT) year to date The total pay between £112 and £155 a week (or £486 and £672 a month)
Earnings above the PT, up to and including the Upper Accrual Point (UAP) year to date The total pay between £156 and £770 a week (or £676 and £3,337 a month)
Earnings above the UAP, up to and including the Upper Earnings Limit (UEL) year to date The total pay between £770 and £815 a week (or £3,337 and £3,532 a month)
Employee contributions payable this period The primary contributions (employee’s NICs) deducted from your employee’s pay this period
Employee contributions payable year to date The total primary contributions (employee’s NICs) deducted from your employee’s pay
Total of employer’s contributions payable in this pay period The secondary contributions (employer’s NICs) you need to pay this period
Total of employer’s contributions payable year to date The total secondary contributions (employer’s NICs)
Scheme Contracted Out Number (SCON) Only put this if you run a contracted-out workplace pension scheme and your employee’s National Insurance category letter is D, E, L, N or O. You can find your SCON on your contracting-out certificate or from your pension provider

Report this National Insurance information when you pay a director.

Field Description
Director’s NIC calculation method Put ‘AN’ if you’re using the standard annual method of work out the director’s NICs, or ‘AL’ if you’re using the alternative method
Week of director’s appointment Put the tax week the director was appointed

EPS: what to report

Send an EPS by the 19th to claim any reduction on what you’ll owe HMRC (eg statutory pay) from your FPS sent the previous tax month. If you’ve not paid any employees in a tax month, send an EPS instead of an FPS.

Include your employer information as well as the below.

Reclaiming statutory pay for parents and CIS deductions

Fill in these fields in your EPS if you:

If you run more than one payroll under the same PAYE employer reference, include the total amount of reductions for all those payrolls.

Field Description
Tax month Put which tax month the EPS credit is for
Statutory Maternity Pay (SMP) reclaimed this tax year  
Extra Statutory Maternity Pay reclaimed this tax year Put how much compensation you’ve reclaimed through Small Employers’ Relief
Ordinary Statutory Paternity Pay reclaimed this tax year  
Extra Statutory Paternity Pay reclaimed this year Put how much compensation you’ve reclaimed through Small Employers’ Relief
Statutory Adoption Pay reclaimed this tax year  
Extra Statutory Adoption Pay reclaimed this tax year Put how much compensation you’ve reclaimed through Small Employers’ Relief
Additional Statutory Paternity Pay reclaimed this tax year  
Extra Additional Statutory Paternity Pay reclaimed this tax year Put how much compensation you’ve reclaimed through Small Employers’ Relief
CIS deductions suffered If you are a limited company that has had CIS deductions made from payments received for work in the construction industry, enter the total amount of CIS deductions suffered year to date

Bank details

Include details of the bank you want HMRC to pay into if you’re overpaid or you’ve reclaimed any statutory maternity, paternity or adoption pay or CIS deductions.

Field Description
Name of account holder  
Account number  
Branch sort code  
Building society reference If applicable

You didn’t pay any employees in a period

Send an EPS with the following information by the 19th after the tax month you didn’t pay any employees. The tax month starts on the 6th. Don’t send an FPS.

Field Description
No payment for period Put ‘Yes’ to tell HMRC you didn’t pay any employees
No payment dates from Put the 6th of the first month where you didn’t pay any employees
No payment dates to Put the 5th of the last month where you didn’t pay any employees
Period of inactivity from Tell HMRC up to 12 months in advance if you won’t pay any employees. Put the 6th of the first month where you won’t pay any employees
Period of inactivity to Put the 5th of the last month where you won’t pay any employees

Claim Employment Allowance

You could get up to £2,000 a year off your National Insurance if you claim Employment Allowance.

Field Description
Employment Allowance indicator Put ‘Yes’ to claim the allowance - you only need to do this once. If you stop qualifying, put ‘No’

New employees

When an employee starts working for you, register them with HMRC by including this information in your FPS the first time you pay them.

Field Description
Start date Only fill this in the first time you pay a new employee
Starter declaration Put the starter declaration that you’ve worked out. Don’t put anything for new pensioners, or employees seconded from abroad
Student loan indicator Put ‘Yes’ if your employee needs you to make student loan deductions
Address  
UK postcode  
Foreign country Only put their country of residence if they live outside the UK, Channel Islands or Isle of Man
Passport number Include this if you reviewed your employee’s passport to check they can work in the UK

There are special rules for what to fill in if you:

When an employee leaves

Report this information when an employee leaves or if you close your PAYE scheme.

Field Description
Date of leaving  
Payment after leaving indicator Put ‘Yes’ if you pay an employee after you’ve sent an FPS with their leaving date (eg you’re paying them after giving them a P45)

Workplace pensions

Report this information when you’re paying a workplace pension or annuity.

Field Description
Occupational pension indicator Put ‘Yes’ if you make occupational pension payments
Annual amount of occupational pension Only put this the first time you pay someone from an HMRC-registered workplace pension scheme. Otherwise leave this field blank (don’t enter £0.00)
Employee receiving occupational pension because they’re a recently bereaved spouse/civil partner Put ‘Yes’ if this applies
Trivial commutation payment type If you’re paying a lump sum - put ‘A’ for a trivial commutation lump sum (TCLS), ‘B’ if it’s from a personal pension scheme, or ‘C’ if it’s from a workplace or public service pension scheme
Trivial commutation payment The lump sum paid. Also fill in the ‘Taxable pay to date’ and ‘Taxable pay in this period’ fields, and put any non-taxable amount in the ‘Non-tax or NIC payment’ field.
Payment to a non-individual Put ‘Yes’ if you make payments to a personal representative, trustee or corporate organisation etc

End-of-year or final reports

You’ll need to complete certain annual reports and tasks to prepare for the next tax year, which starts on 6 April.

Report this information in your final FPS or EPS of the tax year. You should also fill in the relevant fields if it’s your last report because you’re closing your PAYE scheme.

Field Description new
Final submission for year Put ‘Yes’ to tell HMRC this is your final payroll report of the tax year
Ceased indicator Put ‘Yes’ if this is the last report because you’re closing your PAYE scheme. Also enter ‘Date scheme ceased’ and the ‘Date of leaving’ for all your employees. Don’t fill in ‘Final submission for year’
Date scheme ceased  
Forms P11D and P11D(b) due Put ‘Yes’ if you’ve given any employees expenses or benefits this year that you’ll need to report
Employees pay to third party Only put ‘Yes’ if you’ve paid your employee’s salary or wages to anyone else this year (excluding any payments related to child maintenance or salary sacrifice)
Employees out of UK Only put ‘Yes’ if anyone employed abroad also worked for you in the UK for more than 29 days this year
Free of tax payments Only put ‘Yes’ if you paid any of your employees’ tax for them this year
Service company Only put ‘Yes’ if you’re a service company that’s operated IR35 this year
Expenses and benefits Only put ‘Yes’ if anyone else paid expenses or benefits to any of your employees while they were employed by you this year

If HMRC has allowed you to report monthly

Until 2016, HMRC has allowed existing small employers (with fewer than 10 employees) to report monthly, on or before the last payday in the tax month.

When recording your employee pay information in your FPS:

  • set the ‘Pay frequency’ to how often you actually pay your employees
  • for the ‘Payment date’, use the last payment date in the period
  • for the ‘Tax week/month number’, use the corresponding tax week
  • for the ‘Number of earnings periods…’, enter the appropriate number

For employees’ pay and deductions, use the total figures for the month.

For your ‘Late reporting reason’, choose ‘E’.