RTI submission guide: FPS vs EPS in UK payroll

Managing payroll in the UK is about more than just paying your team on time. Since HMRC introduced Real Time Information (RTI), you’re now required to report pay and tax details on or before your employees pay date. This isn’t just an end-of-year task anymore. This change demands accuracy and perfect timing, making every payroll run more critical than ever.

Getting to grips with how RTI submissions work—and the crucial difference between a Full Payment Submission (FPS) and an Employer Payment Summary (EPS)—is fundamental to staying compliant and protecting your business from fines. Whether you run payroll weekly, monthly, or on another frequency, mastering these submissions ensures HMRC processes PAYE, National Insurance, and statutory payments correctly.

Let’s break down what RTI submissions actually are, clarify how FPS and EPS reports differ, and give you the tools to sidestep common payroll mistakes that cost businesses valuable time and money.

What are RTI submissions?

Real Time Information (RTI) is HMRC’s system for collecting payroll data directly from employers as it happens. It threw out the old, outdated method of reporting pay just once at the end of the tax year. Now, you must submit information to HMRC every time you pay your staff, without fail.

This system guarantees that PAYE, National Insurance, and student loan deductions are reported in real time, giving HMRC an accurate, live snapshot of what your employees are earning and the contributions being made. Submitting on time isn’t just good practice; it’s essential for staying compliant and avoiding penalties that can disrupt your business. Using powerful RTI payroll software transforms this process from a manual headache into an automated, seamless function, minimising errors and ensuring you hit every deadline.

With a clear understanding of the ‘what’ and ‘why’, let’s dive into the most common type of submission you’ll be making: the Full Payment Submission.

If you use RTI payroll software, much of this process can be automated. It reduces manual data entry, minimises errors and helps you meet every submission deadline.

What is a Full Payment Submission (FPS)?

A Full Payment Submission (FPS) is the backbone of your RTI reporting. You are required to send an FPS to HMRC each and every time you pay your employees. It doesn’t matter if your payroll runs weekly, fortnightly, or monthly—an FPS is non-negotiable.

This report is a detailed breakdown for each employee, including:

• Their total pay for the period.
• Income tax and National Insurance contributions.
• Any student loan deductions.
• Pension contributions.
• Starter and leaver information.

Submitting this information on or before payday is critical. Missing these deadlines isn’t just a compliance issue; it can lead to hefty fines and directly impact your employees’ eligibility for benefits like Universal Credit. By using Employment Hero Payroll, you can ensure your FPS submissions are always accurate and sent automatically on time. This empowers you to stop chasing paperwork and focus on what you do best: running and growing your business.

Using Employment Hero Payroll ensures your FPS submissions are accurate and sent automatically on time. This helps you focus on running your business, not chasing paperwork.

While the FPS covers what you pay out, you also need a way to report adjustments and reclaims. That’s where the Employer Payment Summary comes in.

What is an Employer Payment Summary (EPS)?

An Employer Payment Summary (EPS) is your tool for communicating adjustments to HMRC that can’t be included in your regular FPS. You’ll send an EPS if you need to reclaim statutory payments or report specific circumstances.

You would submit an EPS to:

• Reclaim statutory parental or sick pay.
• Report your Employment Allowance claim.
• Declare CIS deductions suffered.
• Notify HMRC of any periods where you didn’t pay any employees.
• Report Apprenticeship Levy figures. 

The EPS works alongside the FPS to give HMRC a complete and accurate picture of your total PAYE liabilities. When both are submitted correctly, it ensures your tax records are precise and that your payments to HMRC align perfectly with what you actually owe. Automation tools, like those within Employment Hero, streamline these submissions, removing the risk of forgetting to report crucial information and giving you full confidence in your compliance.

But what happens if you spot a mistake after you’ve already hit ‘send’? Don’t panic; there’s a clear process for corrections.

Automation tools, such as Employment Hero’s payroll automation solution, can help streamline these submissions and eliminate the risk of missing key information.

How do I amend an RTI submission?

Mistakes can happen, but HMRC provides a straightforward way to correct them. If you realise there’s an error in an FPS or EPS after you’ve submitted it, you can simply send a corrected version for the same pay period. Update the information in your payroll software and resubmit the report.

If a submission is late, your payroll software should prompt you to include a valid reason. While occasional corrections are understandable, repeated late submissions without a good reason can lead to penalties. It’s always best to correct errors as soon as you spot them and maintain clear, auditable records of every submission you make.

Failing to stay on top of submissions and corrections can have financial consequences, so it’s important to understand what’s at stake.

Understanding RTI fines and penalties

HMRC enforces strict penalties for late or inaccurate RTI submissions. These fines are designed to ensure compliance and are scaled based on the size of your workforce. For small businesses with up to nine employees, a late submission can result in a £100 monthly penalty. This amount increases for larger employers, reaching up to £400 per month. 

On top of late filing penalties, HMRC can charge interest on any unpaid tax or National Insurance contributions. Significant or repeated errors may also trigger a full compliance check on your business. The most effective way to avoid these penalties and the associated stress is to embed accuracy and automation at the core of your payroll process.

The rules don’t just apply to permanent staff; they extend to every single person you pay.

RTI and casual, seasonal and temporary employees

Whether you hire casual workers for a weekend, seasonal staff for the holidays, or contractors on zero-hours contracts, the RTI rules still apply. You are legally required to submit an FPS every time you make a payment to any employee, no matter how irregular their work pattern is.

If you have a pay period where no employees are paid at all (for example, during an off-season), you must submit an EPS to inform HMRC that no payments were made. For temporary and seasonal staff, it’s especially important to meticulously track start and leaving dates to avoid confusion and maintain compliance during busy periods when your payroll volume might fluctuate.

Ultimately, your compliance hinges entirely on the quality of the data you use.

How payroll data quality impacts RTI compliance

Accurate employee data is the foundation of flawless RTI reporting. Even seemingly small errors can cause major problems, leading to submission rejections, processing delays, and compliance headaches.

Common data errors include:

• Incorrect National Insurance numbers.
• Inconsistent pay dates.
• Misspelled names or incorrect addresses.
• Failure to remove leavers from the payroll promptly.

Before every payroll run, make it a habit to verify that employee details are up-to-date and match HMRC records. Reliable, integrated HR and payroll software is your best defence, helping maintain data accuracy automatically and ensuring every RTI submission is correct the first time.

Knowing the common pitfalls is the first step to avoiding them entirely. But reliable HR and payroll software can help maintain this accuracy automatically, ensuring every RTI submission is correct the first time.

Common RTI mistakes and how to avoid them

Some of the most frequent RTI mistakes are easily preventable. They often include submitting the FPS after payday, forgetting to send an EPS to reclaim statutory payments, or relying on outdated payroll software that isn’t fully compliant. Other common errors involve failing to record employee leaving dates correctly or submitting inconsistent pay information from one period to the next.

To safeguard your business, commit to reviewing your payroll data regularly and ensuring your software is always up to date. By embracing automation, you dramatically reduce the risk of manual entry errors and reclaim valuable time. If you need more specific guidance on managing final payments, our guide on the end-of-employment process explains how to handle leavers correctly and stay compliant.

RTI compliance doesn’t have to be a burden. It’s time to move beyond manual processes and embrace a smarter way of working. With Employment Hero Payroll, you can automate your FPS and EPS submissions, slash admin time, and ensure your business remains fully aligned with HMRC’s requirements.

Take control of your payroll compliance with Employment Hero

RTI compliance doesn’t have to be complex. With Employment Hero Payroll, you can automate FPS and EPS submissions, reduce admin time and keep your business fully aligned with HMRC’s requirements.

Download the RTI submissions factsheet to learn how automation can simplify your reporting and keep your payroll accurate every time you pay staff.