RTI explained: FPS and EPS

What is the difference between FPS and EPS?

Real Time Information, usually shortened to RTI, is part of operating PAYE. Payroll software sends information to HMRC, but different reports serve different purposes. The Full Payment Submission records employee payments and deductions. The Employer Payment Summary supplies particular employer-level information and adjustments.

Neither report transfers money to employees or settles your PAYE bill. Calculation, employee payment, reporting and payment to HMRC are separate activities. A completed payslip does not prove a submission was accepted, and an accepted submission does not prove HMRC has been paid. Keep evidence for each stage rather than one general note saying payroll is complete.

When must you send the FPS?

The normal rule is to submit the FPS on or before employees' payday. This applies even where the employer pays HMRC quarterly. Include employees paid and the required pay, tax, National Insurance and other information. The payment schedule and HMRC settlement schedule are not interchangeable.

HMRC permits later reporting in specific circumstances. Check current exceptions and use the correct late-reporting reason where applicable. Do not treat a penalty easement as permission to make late filing normal practice, and do not pick a reason just because software offers it.

Use payment-date guidance carefully. Where a regular payday falls on a bank holiday and wages are paid early, HMRC says to report the usual payday. Distinguish that from a genuine change to the pay arrangement.

You can report before payday, but submitting too early increases the risk of later changes. Agree an approval point allowing time to submit, resolve rejections and make intended payments. Record who authorises the final data.

When is an EPS required?

An EPS is not automatically required every month. It is used for relevant employer information, including recoverable statutory payments, an Employment Allowance claim, eligible CIS deductions suffered by a limited company, or Apprenticeship Levy reporting. Check the conditions for the specific adjustment rather than sending an empty report by habit.

Follow the rules for each claim. Employment Allowance is claimed for each tax year where the employer is eligible; it is not assumed to continue because payroll claimed it previously. Eligibility and claim details should be reviewed before applying relief.

An EPS normally supplements the FPS where employees have been paid and an employer adjustment is needed. It replaces the FPS for a tax month with no employee payments. Use current GOV.UK guidance for submission timing and how adjustments affect HMRC's liability calculation.

What should you do in a no-pay month?

If no employees were paid during a whole tax month, do not send a routine FPS merely to fill the gap. Send an EPS with appropriate no-payment information. Use HMRC's tax-month definition when checking records; calendar-month totals can lead you to the wrong conclusion.

A seasonal employer may retain staff records while making no payments in a tax month. That differs from paying staff whose tax deductions are nil. Where employees were paid, an FPS may still be required even though no income tax was deducted.

Check official guidance for an extended period without payments. Record the period reported and review before paying staff again. Missing no-payment information can lead to an estimated charge or filing query, which still needs investigation rather than dismissal.

How should you correct a reporting error?

First identify whether the mistake concerns pay, deductions, employee details, a payment date or an EPS figure. Different errors require different actions. Repeatedly resending the original payroll without understanding the problem can create duplicate records or further discrepancies.

For incorrect pay or deductions in the current tax year, HMRC generally directs employers to update year-to-date figures in the next regular FPS. Final submissions, earlier tax years and particular employee-detail errors need their own procedures. Follow current guidance and the software's supported process.

Correct an EPS error promptly using appropriate revised figures. Keep an audit trail explaining the original error, adjustment, acceptance and resulting change to pay or liability. Tell the employer approver what changed, especially if payments have already been released.

How do you check the PAYE bill after filing?

Compare the payroll liability report with accepted FPS records, relevant EPS adjustments and the HMRC account balance. Allow for processing time and check the correct tax month before concluding a difference is an error. Keep payment references alongside the reconciliation.

Investigate missing submissions, duplicates, unprocessed claims, payment allocation and CIS deductions where relevant. Do not send an unsupported balancing adjustment just to make totals agree. A software acknowledgement is useful evidence, but not a complete liability review.

The employer remains legally responsible even when a bureau submits reports. Retain acceptance evidence and agree who checks HMRC's account and authorises settlement. Assign follow-up to a named person and check the exception is closed.

• Approve inputs and payment dates before submission.
• Confirm acceptance, not attempted transmission alone.
• Reconcile liability, adjustments and payment allocation.
• Keep evidence of corrections and employer approval.