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From 6 January 2024, the main rate of class 1 National Insurance contributions (NIC) deducted from employees’ wages is reduced from 12% to 10%. From 6 April 2024, the main rate of self-employed class 4 NIC will reduce from 9% to 8% and class 2 NIC will no longer be due. Those with profits below £6,725 a year can continue to pay class 2 NIC to keep their entitlement to certain state benefits. Our guidance will be updated in full in spring 2024.

Updated on 6 April 2023

Reporting PAYE in real time

This section explains a bit more about HMRC's Real Time Information system, including dedicated pages on the software available to help you file online, and the alternative paper process.

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Real time information for PAYE - overview

As explained in our filing options section, ‘Real Time Information’ (RTI) is a system which sees employers having to report Pay As Your Earn (PAYE) information to HMRC on or before their employees’ pay day. In other words, the information must be reported in ‘real time’.

Online filers

If you are online filing, the information is submitted automatically to HMRC online via payroll software – our RTI software page tells you more about the software (some of which is free) that is available.

The main submissions that you make to HMRC under RTI using your payroll software are the Full Payment Submission (FPS) and the Employer Payment Summary (EPS). We look at the FPS and EPS in more detail in our ongoing tasks section.

Paper filers

Some employers are able to submit their RTI information on paper rather than online. See our paper filing page for more detail about what the RTI paper process looks like. We look at the calculations that you may need to prepare each pay day as part of the paper process in our ongoing tasks section.

RTI – terminology and abbreviations

RTI is full of acronyms! You can find a helpful glossary of the main ones below.

EAS: Employee Alignment Submission

Employers with more than 250 employees must send an EAS prior to the first FPS submission. This is a one-off submission that will be used by HMRC to check whether the employer’s payroll system's records match the information they have. In most other cases, alignment information is included as part of an employer’s first Full Payment Submission (FPS), so a separate EAS is not required.

FPS: Full Payment Submission

You report your employee’s pay information by sending an Full Payment Submission (FPS). This will be the most frequent submission made under RTI – usually on or before each payday – and will be done through your payroll software. An FPS also tells HMRC the amount of tax and National Insurance contributions (NIC) that you have deducted from their pay. HMRC will expect you to pay this to them in full on the normal monthly or quarterly due date.

EPS: Employer Payment Summary

The Employer Payment Summary is the submission you usually make if you do not have any payments to employees to report for a tax month. You may also need it if you want to recover statutory payments, or claim the Employment Allowance for example.

EYU: Earlier Year Update

You may need to make an Earlier Year Update

if you need to make a correction to what you have submitted to HMRC for an earlier tax year.

NVR: National Insurance number Verification Request

You can send a National Insurance number Verification Request if you want to check that the National Insurance number provided by your employee is correct, or find out what your employee's is.

Other RTI abbreviations
BACS Bankers Automated Clearing Services
BPT HMRC's Basic PAYE Tools software
CIS Construction Industry Scheme
DWP Department for Work & Pensions
L&P Viewer Liabilities and Payment Viewer
LEL Lower Earnings Limit
NLW/NMW National Living Wage/National Minimum Wage
PAS Penalty Appeals System
PAYE Pay As You Earn
SAP Statutory Adoption Pay
ShPP Shared Parental Pay
SMP Statutory Maternity Pay
SPP Statutory Paternity Pay
SSP Statutory Sick Pay
SUN Service User Number
UC Universal Credit
YTD Year To Date
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