Payroll
At SMH Chartered Accountants, we provide a comprehensive and compliant Payroll and Real Time Information (RTI) service, ensuring accurate, timely, and error-free payroll processing for our clients.
Real Time Information (RTI)
Real Time Information (RTI) is a mandatory reporting requirement for most employers since April 5, 2013. With RTI, employers submit payroll information to HMRC in real time, eliminating the need for traditional forms like P14, P35, P45, P46, and P46.
What must be reported?
Employers must report payroll information to HMRC. This includes the employees’ pay, tax and deductions.
- A Full Payment Submission (FPS) each time, or before they pay any employees
- An Employer Payment Summary (EPS) each month, which shows any adjustments to the amount they owe HMRC
- An Earlier Year Update (EYU) to correct errors or make adjustments to information submitted in earlier years
- Employers must still provide employees with a P60 end of year summary by 31 May following the tax year
How do I submit information to HMRC?
Employers need to do this using a Full Payment Submission (FPS). If you have payroll software it will generate the required reports and submit your payroll information online to HMRC.
If you don’t need to pay any employees in a particular tax month, you’ll have no FPS to send to HMRC. You must notify them by sending an Employer Payment Summary (EPS) by the 19th of the following tax month. This will make sure HMRC don’t wrongly send a penalty notice because they were expecting an FPS from you.
Penalties for late returns
Monthly penalties are imposed for late filing of Full Payment Submissions (FPS) and Employer Payment Summaries (EPS). The penalties are based on the number of employees in the scheme ranging from £100 for 1-9 employees to £400 for 250 employees or more.
Additionally, if the submission is more than three months late, there is a penalty of 5% of the tax and National Insurance Contributions (NIC) that should have been reported.
Penalties for inaccurate returns
Penalties may be charged after the end of the tax year based on the final FPS for the year. These penalties apply to both in-year returns and the final FPS.
Contact the SMH Chartered Accountants team on info@smh.group or 0114 266 4432 to learn more about our payroll service and how we can help you.
