Ongoing Payroll Tasks
Certain tasks need to be carried out on an ongoing basis
Full Payment Submission (FPS)
Employer Payment Summary (EPS)
End of year documents
Starting a new tax year
This guidance is only for those operating online RTI. If you are operating a manual payroll system (paper) see our paper filing section.
As an employer operating RTI online, you need to complete certain tasks during each tax month. This runs from the 6th of one month to the 5th of the next.
For example, you will need to report your employee's pay and deductions to HMRC in a Full Payment Submission (FPS).
You may also need to use your payroll software to send an Employer Payment Summary (EPS) as well as, or instead of, a FPS.
At the end of the tax year you will need to make your final submissions and deal with the relevant end of year documents. You will also need to get ready to start the new tax year.
Once you have used your payroll software to record your employee’s pay, calculate deductions from their pay, like tax and National Insurance and calculate any employer’s National Insurance contribution that you will need to pay on their earnings, you will need to report this information to HMRC in a FPS.
This is the main submission that must be received by HMRC under RTI. Most employers should send the FPS on or before their employees’ pay day (see GOV.UK for some exceptions). There may be penalties for employers who do not send their information on or before the date staff are paid.
To complete and send the FPS, follow your payroll software’s instructions. If you need help, HMRC have guidance on what to put in each field on an FPS which can be accessed from the GOV.UK website.
Please note that there has been some confusion as to the purpose of the ‘Irregular Payment Pattern Indicator’ field and when and how it should be used. HMRC have therefore confirmed the position, including the following:
- If an individual is paid irregularly, but is always paid at least once every three months, or is reported on each regular FPS, then you do not need to set the irregular payment indicator.
- If your employee is paid on an irregular basis and is unlikely to be reported on an FPS for three months or more, you need to set the irregular payment indicator to ‘Yes’ on the Full Payment Summary (FPS).
- Unless you set the irregular payment indicator or the appropriate pay frequency field, HMRC will assume that an employee who has not been reported on the FPS for a period of time has left that employment.
Sometime after you have sent your FPS, you should be able to view your submitted FPS and how much tax and National Insurance you owe in your online account.
There are certain situations when an EPS must be created and submitted to inform HMRC of amendments to a liability calculated from the FPS for that tax month.
You should submit an EPS in the following circumstances:
- To declare a future period of inactivity
- To recover statutory payments
- To indicate that you have made your final submission for the year (see below)
- To claim the Employment Allowance, if entitled.
The EPS is also used to inform HMRC that no payments have been made to any employees (although some software may send a 'nil' FPS rather than an EPS for this purpose). If you do not file an EPS when you have made no payments at all, HMRC may assume that you have simply forgotten to file and may estimate how much you should pay.
You should make sure that you send the EPS by the 19th of the following tax month.
If, rarely, your payroll software does not include the EPS functionality you can submit an EPS using HM Revenue and Customs' (HMRC) Basic PAYE Tools (BPT).
To complete and send the EPS, follow your payroll software’s instructions If you need help, HMRC has guidance on what to put in each field on an EPS which can be accessed from GOV.UK.
When it comes to the end of the tax year, you will need to put ‘Yes’ in the ‘Final submission for year’ field in your payroll software. Usually you will do this in your FPS (however some payroll providers will only allow you to do this on an EPS). If you forget to put ‘Yes’ in the ‘Final submission for year’ field in your last FPS, you can also send an EPS.
There used to be end-of-year questions to answer but in an announcement published on 17th December 2014, HMRC announced that it will no longer be necessary to answer the year end declaration questions as part of online RTI filing (please note that some payroll software, if it has not been updated for the change, may still contain them – in cases where employers do have to complete the checklist to enable their software to actually make their final submission, they should ensure that they complete it accurately).
You should send your final FPS on or before your employees’ last payday of the tax year (which ends on 5 April) but at the latest by the 19th April (EPS filing deadline also). After that date you will not be able to file an FPS.
If you still need to send payroll information but are too late to send an FPS/EPS or find you need to make a correction to an employee’s record and this doesn’t come to light until after 19 April then you should use an Earlier Years Update (EYU). The EYU should show the difference between the last reported final figure and the correct final figure(s) for the tax year. Don’t send the year to date figures.
You must do this by 19 MAY.
Many employers who need to send an EYU will find that their payroll software already includes that functionality. However, some employers will find that their payroll software does not include the EYU functionality. In that case employers may choose to submit an EYU using HMRC's Basic PAYE Tools (BPT).
If you do use HMRC’s Basic Payroll Tools payroll software (BPT) to send an EYU, then you can find a guide that gives you step by step help on GOV.UK. It contain examples of the screens you will see in BPT and simple to follow instructions.
You will need to give a P60 to all employees on your payroll who are working for you on the last day of the tax year (5 April). The P60 summarises their total pay and deductions for the year. You must give your employees a P60 by 31 May. Your payroll software should automatically produce P60s, however if it does not, you can order copies from HMRC.
You will also need to report any expenses and benefits to HMRC and give a P11D or P9D (for tax years up to and including 2015/16 only) to employees, as appropriate, by 6 July. You can report expenses and benefits using your payroll software, if it has this feature. For other reporting options, see GOV.UK (for example, HMRC have an online form to enable employers to submit end of year expenses and benefits forms P9D, P11D, and P11D(b) right up until the deadline).
You must also report the amount of Class 1A National Insurance due on all the expenses and benefits provided on form P11D(b) by 6 July 2016 and pay any Class 1A National Insurance by the 19th or 22nd July – depending on your payment method.
Where no benefits have been paid during the tax year and a reminder is received (you may get one of these if HMRC are expecting a submission from you but you have not actually provided your employee with any benefits or expenses during the relevant tax year), employers can complete the ‘Employer – No return of Class 1A’ form to advise HMRC that they have no P11D to submit and no Class 1A return to make.
For more information on annual reporting and tasks see the GOV.UK guidance.
You will need to update your payroll software so it uses the latest rates and thresholds for Income Tax, National Insurance and student loan repayments.and update your employee records, for example, identify and input the correct tax code to use in the new tax year.