What Is a Full Payment Submission (FPS)? A Complete Guide for UK Employers

What Is a Full Payment Submission (FPS)?

If your business employs staff in the UK, you have almost certainly encountered the term Full Payment Submission (FPS).

However, many employers, particularly growing SMEs and first-time employers, are unsure exactly what an FPS does, when it must be submitted, and why it is so important for payroll compliance.

Put simply, an FPS is the primary payroll report that employers submit to HMRC through the Real Time Information (RTI) system. Employers must send an FPS every time they pay employees, whether payroll is weekly, fortnightly, four-weekly, or monthly. HMRC uses the information contained within the FPS to update PAYE records, calculate liabilities, and monitor compliance.

For UK businesses, understanding FPS reporting is essential because late or inaccurate submissions can create payroll compliance issues and potentially lead to HMRC penalties.

Why Did HMRC Introduce FPS Reporting?

Before the introduction of RTI, employers typically reported payroll information to HMRC through annual returns.

However, HMRC introduced Real Time Information to improve payroll accuracy by collecting information each time employees are paid rather than waiting until the end of the tax year. RTI requires employers to report pay, tax, National Insurance, and deductions in real time as payroll is processed.

As a result, HMRC receives more up-to-date payroll information and can maintain more accurate records for employees.

What Is a Full Payment Submission (FPS)?

A Full Payment Submission (FPS) is the payroll report employers send to HMRC every time employees are paid. The FPS contains details about employee earnings, tax deductions, National Insurance contributions, and other payroll-related information. HMRC requires employers to submit an FPS on or before payday.

In simple terms:

• You process payroll.
• You calculate employee pay and deductions.
• You create an FPS through payroll software.
• Your software submits the FPS to HMRC.

HMRC then updates employee PAYE records using the information provided.

When Must an FPS Be Submitted?

One of the most important payroll compliance rules is timing.

HMRC states that employers must submit a Full Payment Submission on or before the date employees are paid. This applies regardless of whether HMRC liabilities are paid monthly or quarterly.

For example:

• If employees are paid on the 25th of the month, the FPS must be submitted on or before the 25th.
• If wages are paid weekly, an FPS must be sent for each payroll run.
• If employees are paid early because of a bank holiday, employers should still report their normal payday.

Consequently, employers should build FPS reporting into their payroll process rather than treating it as a separate administrative task.

What Information Is Included in an FPS?

The FPS contains a significant amount of payroll data.

HMRC requires employers to provide details including employer information, employee information, pay, deductions, and National Insurance calculations.

Typically, an FPS includes:

Employer Information

The submission contains information that identifies the payroll scheme, including:

• PAYE reference
• Accounts Office reference
• Payroll scheme details

Employee Information

The FPS also contains employee records such as:

• Employee names
• Date of birth
• Payroll ID
• National Insurance details
• Address information for relevant cases
• Starter and leaver information

Pay and Deductions

The report includes:

• Gross pay
• Income Tax deductions
• National Insurance Contributions
• Student loan deductions
• Statutory payments
• Other payroll deductions

This information helps HMRC maintain accurate PAYE records throughout the year.

What Is the Difference Between FPS and EPS?

Many employers confuse the Full Payment Submission (FPS) and the Employer Payment Summary (EPS).

Although both form part of RTI reporting, they serve different purposes.

FPS

The FPS reports:

• Employee earnings
• PAYE deductions
• National Insurance deductions
• Payments made to employees

Employers submit an FPS whenever employees are paid.

EPS

The EPS reports adjustments that cannot be reported through the FPS.

This may include:

• Statutory payment recovery
• Employment Allowance claims
• CIS deductions suffered
• Periods when no employees were paid

Employers typically submit an EPS when specific adjustments need to be reported to HMRC.

In most payroll periods, businesses submit an FPS. The EPS is only required under specific circumstances.

Why Is FPS Reporting So Important?

A Full Payment Submission sits at the centre of payroll compliance.

HMRC uses FPS information to:

• Monitor PAYE reporting
• Track Income Tax deductions
• Track National Insurance Contributions
• Maintain employee tax records
• Verify payroll data

Furthermore, HMRC uses RTI information to support wider government systems and calculations relating to employee records. Because of this, accurate reporting is essential.

What Happens if an FPS Is Late?

Late FPS submissions are one of the most common payroll mistakes made by employers.

If an FPS is submitted after payday without a valid reason, HMRC may issue penalties or investigate repeated late filing. Late reporting can also create issues with employee records and HMRC reconciliations.

Common causes of late submissions include:

• Leaving payroll processing until the last minute
• Inaccurate employee records
• Payroll software issues
• Internal approval delays
• Staff absences

As a result, employers should plan payroll processing carefully and allow sufficient time for payroll reviews before payday.

What Happens if You Make a Mistake in Your FPS?

Payroll errors happen.

Fortunately, HMRC allows employers to correct mistakes by submitting corrected information through payroll software.

HMRC recommends correcting FPS errors as soon as they are identified. Depending on the nature of the mistake, payroll software can often generate amended or corrected submissions.

The sooner an error is corrected, the lower the risk of creating wider compliance problems.

Common FPS Mistakes Employers Make

Many payroll issues arise from relatively simple mistakes.

Some of the most common FPS errors include:

• Late submissions
• Incorrect pay dates
• Incorrect employee data
• Missing starter information
• Incorrect National Insurance details
• Failing to report leavers correctly
• Not correcting errors promptly

Therefore, employers should regularly review payroll procedures and maintain accurate employee records.

How Payroll Software Helps with FPS Reporting

Modern payroll software automates much of the FPS process.

Most payroll systems will:

• Calculate taxes automatically
• Generate FPS files
• Submit information electronically
• Maintain submission receipts
• Store payroll records

This reduces manual administration and helps employers maintain compliance.

However, software still depends on accurate employee data and effective payroll processes.

Should You Manage FPS Reporting Yourself or Outsource Payroll?

Many businesses successfully manage payroll internally.

However, as organisations grow, payroll complexity often increases.

Workplace pensions, Benefits in Kind, employee benefits, RTI reporting, and changing payroll legislation all add administrative workload.

Consequently, many UK businesses choose fully managed payroll services.

A managed payroll provider handles:

• Payroll calculations
• FPS submissions
• EPS reporting
• Workplace pension administration
• HMRC reporting
• Payroll compliance

This can reduce risk while freeing internal teams to focus on other priorities.

Need Help Managing FPS Reporting?

A Full Payment Submission (FPS) is one of the most important payroll reporting obligations for UK employers. Every payroll run generates information that HMRC needs to maintain accurate PAYE records. Therefore, submitting accurate FPS reports on time is critical for payroll compliance.

By understanding how FPS reporting works, keeping payroll records accurate, and ensuring submissions happen before payday, employers can significantly reduce payroll risks and maintain confidence in their payroll processes.

At PayCheck, we help businesses manage payroll, RTI reporting, workplace pensions, and HMRC compliance through our fully managed payroll service.

With nearly 30 years of payroll expertise, support for 1,500+ UK businesses, and our industry-leading 3 Ring Promise, we help employers stay compliant while reducing payroll administration.

Speak to our Payroll Masters today to find out how we can simplify payroll reporting for your business.