As an employer in the UK, you are required to report information about your employees’ pay and deductions to HM Revenue and Customs (HMRC) on a regular basis. This process is known as payroll reporting, and it is an important part of your obligations as an employer.
To do payroll reporting, you will need to use an online service called Real Time Information (RTI). RTI allows you to send information about your employees’ pay and deductions to HMRC on a regular basis, typically every time you pay your employees.
and here’s Employer Payment Summary (EPS) for employers in the UK
To use RTI, you will need to do the following:
- Register for RTI with HMRC. You can do this online through the HMRC website.
- Set up your payroll software to submit RTI reports to HMRC. Most payroll software providers offer RTI-compliant software, so you can use the software you already have or switch to a different provider if necessary.
- Collect information about your employees’ pay and deductions. This includes their gross pay, any deductions (such as tax and National Insurance), and any additional payments (such as bonuses or commissions).
- Submit an RTI report to HMRC every time you pay your employees. This should be done on or before the day that you pay your employees.
When you submit an RTI report, you will need to include the following information:
- Your employer PAYE reference number
- The tax year and period for which you are reporting
- The total amount of pay and deductions for the period
- The total amount of tax and National Insurance deductions for the period
- The total number of employees you are reporting on
Once you have submitted your RTI report, HMRC will use the information to update your employees’ tax codes and ensure that they are paying the correct amount of tax and National Insurance.
In addition to submitting RTI reports, you will also need to submit an annual Employer Payment Summary
Follow us on Instagram – Nomadsaccountinguk
Follow our account for financial strategies and advice to help grow your business.