How to Submit PAYE RTI to HMRC: Full Payment Submission (FPS) Employer Walkthrough

Under HMRC's Real Time Information (RTI) system, employers must submit a Full Payment Submission (FPS) on or before every pay date. Not monthly. Not quarterly. Every time an employee is paid. The FPS reports PAYE, NICs, and statutory payments to HMRC in real time, and the deadline is built into the pay run itself.

Who Must Submit

All employers who pay employees subject to PAYE must submit an FPS, including UK companies, foreign companies with employees working in the UK, and employers with a single employee. The obligation applies for any employee earning above the Lower Earnings Limit (£6,396/year for 2026/27).

Step 1: Register as an Employer with HMRC

Go to gov.uk/register-employer and complete the online registration.
HMRC issues a PAYE reference (format: 123/A456) and Accounts Office reference (18-character) within 5 working days.
Register for PAYE Online via the HMRC Business Tax Account for RTI submission access.

For foreign companies without a UK presence, allow additional time — HMRC may require postal verification.

Step 2: Collect New Employee Data

Before the first FPS, collect:

Starter declaration: Determines the initial tax code. Employee declares employment status (first job, second job, pension).
National Insurance number: Use temporary reference "TN" plus date of birth and gender if the employee does not yet have one.
Date of birth: Required for NIC category determination.

Step 3: Calculate PAYE and NICs

PAYE: Use HMRC's payroll tables or software based on gross taxable pay, tax code, pay frequency, and year-to-date figures.

NICs — key categories:

NIC category	Employer rate	Employee rate
A (standard)	15% above Secondary Threshold (£5,000/year)	8% (£12,570 to £50,270); 2% above
M (under 21)	0% up to £50,270; 15% above	Standard
H (apprentice under 25)	0% up to £50,270; 15% above	Standard
C (over State Pension age)	15% above Secondary Threshold	0%

Always verify each employee's NIC category — defaulting to Category A generates unnecessary employer NIC for under-21 and apprentice employees.

Step 4: Submit the FPS

The FPS must be submitted on or before the date the employee is paid.

Via payroll software (recommended)

All major UK payroll software (Sage, Xero, BrightPay, QuickBooks Payroll, etc.) submits the FPS directly to HMRC during the payroll run.

Complete the payroll run.
Review the summary (PAYE, NICs, net pay per employee).
Submit the FPS within the software — HMRC acknowledges receipt within seconds.
Correct any returned errors and resubmit.

Via HMRC's free Basic PAYE Tools

For employers with fewer than 10 employees, HMRC's free Basic PAYE Tools handles FPS submission without commercial software. Download from gov.uk/basic-paye-tools.

Step 5: Handle Late or Corrected FPS Submissions

Late FPS: Submit as soon as possible and select the appropriate "Late reason" code. Pay on time regardless of FPS status — late payment and late filing are separate penalty events.

In-year correction: Submit a corrected FPS with updated figures. The system updates year-to-date totals automatically.

After tax year ends: Submit an Earlier Year Update (EYU) via payroll software or HMRC Online Services.

Step 6: Submit the EPS for Nil Periods and Claims

Situation	EPS deadline
No employees paid in the month	19th of the following tax month
Claiming Employment Allowance (up to £10,500)	Start of each tax year
Reclaiming SMP, SSP, etc.	19th of the following tax month

The Employment Allowance must be actively claimed each year via EPS — it does not carry over automatically.

Payment Deadline

PAYE and NIC payments must reach HMRC by the 22nd of the following tax month (electronic) or 19th (postal). The tax month runs 6th to 5th — the April period is due by 22 May.

Pay via HMRC's online portal using the Accounts Office reference number (not the PAYE reference number). Payments with the wrong reference are misallocated and generate late payment interest.

Common Mistakes

1. Treating the 22nd as the FPS deadline. The FPS must be submitted on or before pay date. Filing on the 22nd means it is late for every earlier pay date in the month.

2. Not claiming Employment Allowance via EPS. Eligible employers who skip this step pay the full employer NIC liability without the £10,500 reduction.

3. Using incorrect NIC categories. Under-21 (M) and apprentice under 25 (H) employees attract 0% employer NIC up to £50,270. Defaulting to Category A generates unnecessary cost.

4. Not submitting a nil EPS. In months where no employees are paid, a nil EPS must be submitted by the 19th. Missing it generates HMRC compliance messages and creates gaps in RTI history.

5. Using the PAYE reference for payment instead of the Accounts Office reference. Payments made with the PAYE reference are misallocated even when funds reached HMRC on time.

How Cadana Supports UK Payroll Compliance

Submitting FPS on or before every pay date, applying correct NIC categories, claiming the Employment Allowance via EPS, reclaiming statutory payments, and managing the full RTI cycle — Cadana's global payroll tax engine handles UK HMRC compliance at the API layer.

Book a demo at cadanapay.com/book-demo to see how it works in practice.

Sources and References

Process current as of April 2026. Verify 2026/27 NIC thresholds and Employment Allowance via HMRC's annual employer guidance.