What is RTI? Real Time Information payroll submissions explained for UK employers

Every time you pay a member of staff, HMRC expects to hear about it on or before the day the money leaves your account. That's the core of Real Time Information (RTI).

So, what's the meaning of RTI?

Real Time Information (RTI) is a digital reporting system that requires UK employers to submit payroll data to HMRC each and every time payroll is run, rather than once at the end of the tax year.

If you're running payroll manually, through a spreadsheet, or with software that doesn't handle submissions automatically, RTI is the thing most likely to catch you out. Missing a submission or submitting late triggers automatic financial penalties.

This guide explains what RTI means in practice, what you need to submit and when, what happens if something goes wrong, and how the right payroll software takes most of this off your plate.

Why RTI was introduced 

Before April 2013, employers submitted payroll information to HMRC once a year an end-of-year return that summarised what every employee had been paid and what had been deducted. The problem was that HMRC was always working with stale data. Tax codes could be wrong for months. Over-payments and under-payments built up quietly. Discrepancies between employer records and HMRC's own data were common and time-consuming to resolve.

RTI replaced that system.

Instead of a single annual snapshot, HMRC now receives payroll data in real time matched to each pay cycle, for every employer running a Pay As You Earn (PAYE) scheme. The result is more accurate tax calculations, fewer year-end surprises for employees, and a much cleaner picture for HMRC of what's actually being paid across the UK workforce.

For employers, it means payroll reporting is no longer something you do once a year. It happens every payday.

The two main RTI submissions: FPS and EPS 

There are two submissions you'll regularly use as an employer:

Full Payment Submission (FPS)  

The Full Payment Submission (FPS) is the main RTI return. You send one to HMRC on or before every payday it contains the payroll data for that pay period, at the individual employee level. This is not optional and there is no paper alternative. All RTI submissions must be made electronically through HMRC compliant payroll software.

Employer Payment Summary (EPS)  

The Employer Payment Summary (EPS) is filed separately from the FPS and covers adjustments or periods where no employees were paid. You'd use an EPS to:

• Claim back statutory payments (Statutory Maternity Pay, Statutory Paternity Pay, etc.)

• Claim the Employment Allowance

• Notify HMRC that no employees were paid in a given tax month

• Report Construction Industry Scheme (CIS) deductions suffered

The EPS is due by the 19th of the following tax month. If you had no payroll to run in a given period and don't send an EPS to tell HMRC, they'll assume you've simply forgotten to file and may issue a penalty.

What information goes into an FPS? 

Each FPS you submit contains data at both the employer and employee level. For every employee paid in that period, the FPS includes:

• Employee personal details (name, date of birth, National Insurance number, address)

• Tax code and tax basis (cumulative or week 1/month 1)

• Gross pay for the period

• Income Tax deducted

• National Insurance Contributions (NICs) both employee and employer

• Student loan and postgraduate loan deductions where applicable

• Statutory payments (Statutory Maternity Pay, Statutory Sick Pay, etc.)

• Pension contributions

• Year-to-date totals for each of the above

• Starter and leaver information where relevant

RTI deadlines you need to know 

The core rule is simple: submit your FPS on or before the day you pay your employees. Not after. On or before.

First late submission: HMRC does not penalise the first late FPS in a tax year, provided it is not for an employer registered as an annual scheme.

FPS vs EPS: a quick comparison  

Note: Zoho Payroll handles both FPS and EPS submissions automatically, so the right report goes to HMRC at the right time without any manual intervention on your part.

RTI penalties: what happens if you file late? 

Late or missing RTI submissions attract automatic monthly penalties based on the number of employees in your PAYE scheme:

If submissions remain outstanding for more than three months, an additional penalty of 5% can apply after 3 months, but only at HMRC's discretion in serious or persistent cases.

Late PAYE payment: If the PAYE you owe remains unpaid, separate automatic penalties of 5% apply at 6 months overdue and again at 12 months overdue.

Penalties also apply for:

• Sending fewer FPS submissions than expected for a given period

• Failing to send an EPS in a tax month where no employees were paid

• Inaccurate in-year RTI submissions

If you run more than one PAYE scheme, penalties can be charged on each scheme separately.

How to correct an RTI error 

Mistakes happen a wrong tax code, an incorrect NI number, a pay figure entered incorrectly. Here's how corrections work under RTI:

Errors in the current tax year: Submit an additional FPS with the corrected figures. HMRC's system overwrites the previous submission with the updated year-to-date totals.

Errors in a previous tax year: Prior to April 2020, employers used the Earlier Year Update (EYU) to fix mistakes in closed tax years. From April 2020, HMRC replaced this with an additional FPS submission. From 6 April 2026, the EYU was removed entirely. Today, all prior-year corrections are made by resubmitting an FPS with the correct year-to-date figures for the affected employee.

Keeping records: RTI payroll records must be kept for at least three years after the end of the tax year to which they relate.

Common RTI mistakes employers make 

Even well-run payroll processes can slip up on RTI. The most frequent issues:

• Submitting the FPS after payday even by a day. The "on or before" rule is strict.

• Not sending an EPS when no one was paid HMRC won't know payroll was skipped; they'll assume the FPS was simply missed.

• Incorrect or missing National Insurance numbers this affects employees' NI records and can trigger HMRC queries. If a new employee doesn't know their NI number, leave the field blank on the FPS rather than guessing HMRC will match it. Note: the NI Verification Request (NVR) service, which allowed employers to verify NI numbers through RTI, was withdrawn by HMRC on 3 February 2025.

• Wrong tax codes particularly for new starters where a P45 wasn't provided. Using the wrong starter declaration results in incorrect tax deductions from day one.

• Forgetting starter and leaver details if an employee joins or leaves mid-month, that information must be included in the FPS for that period.

The way forward 

RTI compliance isn't complicated once the process is in place the challenge is consistency. Every payday needs an FPS. Every no-payment month needs an EPS. Every correction needs to go back through the system correctly.

Checklist for staying on top of RTI:

• Confirm your payroll software is HMRC compliant and submits FPS automatically on or before payday, like Zoho Payroll

• Set a reminder to send an EPS by the 19th of each month where no employees were paid

• Check employee NI numbers and tax codes for all new starters before the first pay run leave the NI number field blank if unknown rather than guessing

• Include starter and leaver information in the FPS for the relevant pay period

• Keep payroll records for a minimum of three years after the end of each tax year

• If you spot an error, correct it promptly with an additional FPS don't wait

The good news is that modern payroll RTI softwares like Zoho Payroll handles submission timing, FPS and EPS generation, and correction workflows automatically. The risk of missing a deadline drops sharply when the process isn't manual.

About Zoho Payroll 

Zoho Payroll is part of Zoho's suite of 55+ integrated business applications, trusted by over 150 million users across 150+ countries. As payroll software for employers in the UK, Zoho Payroll handles PAYE calculations, payslip generation, and RTI submissions sending your FPS to HMRC automatically on or before each payday, so you're compliant without having to think about it.

Frequently Asked Questions 

• What does RTI mean in payroll?

RTI stands for Real Time Information. It's HMRC's digital reporting system that requires UK employers to submit payroll data pay, tax deductions, and National Insurance every time they pay their employees, rather than once at year end. It has been mandatory for all employers running a PAYE scheme since April 2013.

• What is an FPS submission?

A Full Payment Submission (FPS) is the main RTI return sent to HMRC on or before each payday. It contains employee-level data including gross pay, Income Tax deducted, NIC amounts, year-to-date totals, and starter or leaver information where applicable.

• What is the difference between FPS and EPS?

The FPS is submitted every payday and reports what you've paid your employees. The EPS is submitted separately usually by the 19th of the following tax month to report adjustments such as statutory payment reclaims, Employment Allowance claims, or to notify HMRC that no employees were paid in a given period.

• What happens if I submit my RTI late?

Late FPS submissions attract automatic monthly penalties ranging from £100 (for 1–9 employees) to £400 (for 250+ employees). The first late submission of the tax year is typically not penalised. If submissions are more than three months overdue, an additional 5% penalty on the tax and NI that should have been reported applies.

• Do I need to submit RTI if I didn't pay any employees this month?

Yes you need to send an Employer Payment Summary (EPS) to notify HMRC that no payments were made. If you don't, HMRC will assume you've simply missed the FPS and may issue a penalty.

• Can I submit RTI on paper?

No. All RTI submissions must be made electronically through HMRC-recognised payroll software. There is no paper option.

• How do I correct an RTI submission?

For errors in the current tax year, submit an additional FPS with the corrected year-to-date figures this overwrites the previous submission. For errors in a previous tax year, the Earlier Year Update (EYU) was abolished in April 2023; corrections now go through an additional FPS or HMRC's online correction service.