Quick answer: RTI payroll means reporting your payroll to HMRC in real time, using HMRC’s Real Time Information (RTI) system. Every time you pay your employees, you send HMRC a Full Payment Submission (FPS) with their pay, tax, and National Insurance, on or before payday. You send an Employer Payment Summary (EPS) only when you need to report adjustments, such as statutory payment reclaims.
RTI payroll has completely changed how employers manage Pay As You Earn (PAYE), turning payroll reporting from an end-of-year task into something that happens every payday.
Since 2013, Real Time Information has required employers to send PAYE data to HM Revenue & Customs (HMRC) every time they pay their people. That means income tax and National Insurance contributions (NICs) are reported accurately with every payroll run, rather than all at once at the end of the tax year.
In this guide, we’ll explain what RTI payroll is, how it fits into your pay run, and what you need to send. For deadlines, penalties, error codes, and year-end in full, see our Real Time Information guidance for 2026/27.
What is RTI payroll?
RTI payroll is the process of reporting employee pay, tax, National Insurance, and other deductions to HMRC electronically each time you run payroll. It’s built into your normal payroll routine, so reporting happens as you pay people rather than as a separate task.
RTI payroll at a glance
- What it is: Reporting your payroll to HMRC every payday through Real Time Information.
- Introduced: April 2013.
- Who it applies to: All UK employers running a PAYE scheme, whatever their size.
- Key submissions: The Full Payment Submission (FPS) and the Employer Payment Summary (EPS).
- FPS deadline: On or before each payday.
- EPS deadline: By the 19th of the following tax month, when you have something to report.
Getting RTI payroll right helps you avoid last-minute tax surprises, makes sure your employees pay the right amount of tax, and keeps your records up to date with HMRC.
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How RTI payroll works each pay run
RTI fits into the payroll process you already run. Here’s what a typical pay run looks like:
- Update your payroll data: Add any new starters, leavers, pay changes, overtime, or deductions for the period.
- Run your payroll: Your software calculates pay, tax, National Insurance, and statutory payments for each employee.
- Review and confirm: Check the figures, then confirm the pay run.
- Create your FPS: Your payroll software generates the Full Payment Submission from the pay run.
- Send it to HMRC: Submit the FPS on or before payday, even if you pay HMRC quarterly.
- Pay your employees: Pay them on the date you’ve reported to HMRC.
- Send an EPS if you need to: By the 19th of the following tax month, if you have reclaims or adjustments to report.
HMRC then uses your FPS (and any EPS) to work out what you owe, and you pay that by the 22nd of the following tax month (or quarterly, if you’re eligible).
It’s important that the payment date on your FPS needs to match the date your employees are actually paid. A wrong date can cause mismatches in HMRC’s records and affect employees who claim Universal Credit, as their payments are assessed using RTI data.
RTI submissions
| FPS (Full Payment Submission) | EPS (Employer Payment Summary) | |
|---|---|---|
| What it reports | Employee pay, tax, and NIC deductions | Adjustments, reclaims, and months with no payments |
| How often | Every payday | When you have something to report |
| Deadline | On or before each payday | By the 19th of the following tax month |
Full Payment Submission (FPS)
Your FPS gives HMRC details about each employee you’ve paid, including:
- Personal information: Names, addresses, tax codes, and National Insurance numbers.
- Pay details: Pay for the period, year-to-date figures, and net pay.
- Deductions: The income tax and NICs deducted.
- Employment status: Whether an employee is a new starter or a leaver.
Employer Payment Summary (EPS)
You only send an EPS when you have something to report. You’d use it to:
- Claim Employment Allowance.
- Reclaim statutory payments, such as maternity or paternity pay.
- Report and pay the Apprenticeship Levy, if your annual pay bill is more than £3 million.
- Tell HMRC you haven’t paid any employees in a tax month.
Who needs to run RTI payroll?
All UK employers running a PAYE scheme need to report through RTI, whatever the size of the business. Your obligation starts as soon as you pay your first employee, so whether you employ one person or thousands, every pay run needs to be reported.
That includes part-time, seasonal, and temporary staff, and directors who are paid through payroll. And if you use a payroll provider or bureau, you’re still legally responsible for your RTI reporting, even though they send the submissions for you.
Late or missing submissions can lead to monthly penalties from HMRC. Our RTI guidance for 2026/27 covers penalties, error codes, and how to correct mistakes.
How payroll software handles RTI
The right payroll software takes most of the work out of RTI payroll. It can:
- Record your people’s details, including starters, leavers, and changes.
- Calculate pay, tax, National Insurance, and statutory payments in line with HMRC rules.
- Create your FPS and EPS from each pay run.
- Check your data before submission to reduce errors and rejections.
- Work out what you owe HMRC.
Real Time Information makes life easier, but why stop there?
Before your first RTI submission, make sure your software is RTI-enabled, you’re registered for PAYE for employers online, and your HMRC references match those in your software. If you use Cintra IQ, here’s how to submit an FPS or EPS to HMRC. For a few more ways to keep things running smoothly, take a look at our RTI New Year’s resolutions.
Whether you need payroll software or a fully outsourced solution, we’d be happy to show you around.
Payroll Legislation Guide
The facts, figures, thresholds and allowances for 2026/27 spanning tax, National Insurance, pensions, statutory payments and more.
Frequently asked questions
Q. What is RTI payroll?
A. RTI payroll means reporting your payroll to HMRC in real time through the Real Time Information system. You send a Full Payment Submission (FPS) every time you pay your employees, on or before payday, with details of their pay and deductions.
Q. What does RTI stand for in payroll?
A. RTI stands for Real Time Information. It’s the HMRC system employers use to report payroll information each time they pay their employees.
Q. Do small businesses need to use RTI payroll?
A. Yes. Every employer running a PAYE scheme needs to report through RTI, even if you only employ one person.
Q. What’s the difference between an FPS and an EPS?
A. You send an FPS on or before every payday to report each employee’s pay and deductions. You only send an EPS when you have something to report, such as a statutory payment reclaim, by the 19th of the following tax month.
Q. Can I run RTI payroll without payroll software?
A. You need software that can send RTI submissions to HMRC. HMRC offers free Basic PAYE Tools for employers with fewer than 10 employees, but most organisations use commercial payroll software to handle the calculations and submissions in one place.
