What Is RTI? 

Real Time Information (RTI) is the system used by HMRC to collect payroll information from employers every time employees are paid.

Introduced in 2013, RTI fundamentally changed how payroll reporting works in the UK. Instead of reporting employee pay and deductions once a year, employers must now submit payroll information in real time each pay period.

For businesses running payroll weekly, fortnightly or monthly, this means payroll data must be sent to HMRC every time employees are paid. While RTI has improved transparency and tax accuracy, it also places greater responsibility on employers to ensure payroll submissions are accurate and submitted on time.

Errors can lead to penalties, compliance issues and administrative headaches. This guide explains how RTI works, the key submissions employers must make, and how outsourcing payroll can help businesses manage RTI reporting effectively.

What Is RTI (Real Time Information)?

Real Time Information (RTI) is HMRC’s system for collecting PAYE payroll data from employers. Under RTI, employers must submit payroll details electronically to HMRC each time employees are paid.

This includes information such as:

• Employee earnings
• PAYE tax deductions
• National Insurance contributions
• Student loan repayments
• Pension deductions
• Statutory payments (SSP, SMP, etc.)

The purpose of RTI is to ensure that HMRC receives payroll information as it happens, allowing tax calculations to be updated continuously rather than retrospectively.

This system also enables HMRC to maintain accurate records for:

• Universal Credit calculations
• State benefit eligibility
• Income verification
• Tax code adjustments

Key RTI Submissions Employers Must Make

RTI reporting involves several types of submissions. The most common are Full Payment Submissions (FPS) and Employer Payment Summaries (EPS). Understanding these correctly is critical for payroll compliance.

Full Payment Submission (FPS)

The Full Payment Submission (FPS) is the main payroll report sent to HMRC. Employers must submit an FPS on or before the date employees are paid.

The FPS includes:

• Employee pay details
• PAYE tax deducted
• National Insurance contributions
• Student loan repayments
• Statutory payments
• Employee hours worked
• Employee leaving dates (if applicable)

If you pay employees monthly, an FPS must be submitted every month. If you run weekly payroll, it must be submitted every week. Failure to submit FPS on time can trigger HMRC penalties.

Employer Payment Summary (EPS)

The Employer Payment Summary (EPS) is used to report adjustments to the payroll liability owed to HMRC.

An EPS may be required if:

• No employees were paid during a tax month
• The employer is claiming statutory payment compensation
• Apprenticeship levy adjustments apply
• CIS deductions need to be reported

The EPS ensures HMRC receives an accurate summary of what the employer actually owes.

Why RTI Accuracy Matters

RTI submissions are used by HMRC to reconcile payroll taxes in real time. Even small mistakes can cause issues such as:

• Incorrect tax calculations
• HMRC payment discrepancies
• Employee tax code errors
• Universal Credit payment problems
• HMRC compliance enquiries

Because RTI information feeds directly into HMRC systems, errors often affect both employers and employees. For example, an incorrect FPS submission may result in an employee appearing underpaid or overpaid in HMRC records. Correcting RTI mistakes can take time and often requires additional submissions.

Common RTI Mistakes Employers Make

Many RTI errors occur because payroll processes are rushed or systems are outdated.

Some of the most common RTI mistakes include:

Late FPS submissions: Submitting payroll data after employees have already been paid can trigger automatic penalties.

Incorrect employee information: Errors in employee names, National Insurance numbers or addresses can create discrepancies in HMRC records.

Payroll timing mismatches: If payroll is processed on one date but employees are paid on another, RTI submissions may not align with payment records.

Failure to submit EPS when required: Some employers forget to submit EPS reports when adjustments apply, leading to incorrect PAYE balances.

Incorrect leaver or starter reporting: Employee starters and leavers must be reported accurately to ensure tax codes and employment records remain correct.

RTI Penalties for Late Submissions

HMRC can issue penalties for late RTI submissions depending on the number of employees in the business.

Typical monthly penalties may include:

Number of Employees	Monthly Penalty
1–9 employees	£100
10–49 employees	£200
50–249 employees	£300
250+ employees	£400

Additional penalties may apply if inaccuracies are discovered or if late submissions occur repeatedly.

Best Practices for Getting RTI Right

To ensure RTI compliance, businesses should adopt a structured payroll process.

Submit payroll before employees are paid: Always ensure payroll reports are submitted on or before the payment date.

Use reliable payroll software: Modern payroll systems automatically generate RTI submissions and reduce manual errors.

Keep employee records accurate: Regularly verify employee details, including National Insurance numbers and addresses.

Reconcile payroll reports monthly: Ensure PAYE liabilities reported to HMRC match your payroll records.

Stay updated with HMRC changes: Payroll rules and reporting requirements evolve regularly.

Why Many Businesses Choose Payroll Outsourcing

Managing payroll internally can become increasingly complex as regulations evolve. Businesses often outsource payroll to reduce compliance risk and administrative burden.

Outsourcing can provide:

• Specialist payroll expertise
• RTI submission management
• Statutory payment administration
• HMRC compliance monitoring
• Secure payroll data handling

This allows businesses to focus on operations while payroll professionals handle regulatory requirements.

How PayCheck Supports Businesses with RTI Compliance

Managing RTI submissions accurately and consistently is critical for avoiding HMRC penalties and maintaining payroll compliance. Payroll outsourcing providers such as PayCheck specialise in managing payroll reporting for UK businesses.

PayCheck provides fully managed payroll services that ensure RTI submissions are completed accurately and on time.

Their services typically include:

• Accurate RTI submissions: Payroll data is processed and submitted to HMRC through secure RTI systems each pay period.
• Payroll compliance monitoring: Payroll experts monitor regulatory changes to ensure reporting remains compliant.
• PAYE and statutory payment management: All statutory calculations including SSP, SMP and other payments are handled correctly.
• Error reduction and audit checks: Payroll data is reviewed to reduce submission errors and discrepancies.
• Integration with business systems: Payroll processes are integrated with existing HR and accounting workflows to ensure smooth operations.

PayCheck has been supporting UK businesses with payroll services since 1996 and works with organisations across a wide range of industries. By outsourcing payroll to specialists, businesses can significantly reduce the risk of RTI reporting errors while saving time and administrative resources.

Take control of your payroll compliance with PayCheck

Real Time Information reporting is now a core part of payroll compliance in the UK. Every employer operating PAYE must ensure payroll data is submitted accurately and on time to HMRC. With increasing regulatory complexity and growing reporting expectations, many businesses are turning to specialist payroll providers to manage RTI submissions and ensure compliance.

Getting RTI right protects businesses from penalties, maintains employee trust and ensures payroll operations run smoothly.

With PayCheck, you can automate FPS and EPS submissions, reduce admin time and keep your business fully aligned with HMRC’s requirements. Schedule a discovery call with one of our