RTI submissions explained

What is RTI?

Real Time Information (RTI) is the system HMRC uses to receive payroll data. Since April 2013, employers must submit payroll information to HMRC on or before every payment date — not just at year-end.

There are two main submission types: the Full Payment Submission (FPS) and the Employer Payment Summary (EPS).

Full Payment Submission (FPS)

The FPS is submitted every time you pay employees. It tells HMRC:

• Employee details (name, NI number, tax code)
• Gross pay for the period
• Tax and NI deducted
• Student loan deductions
• Year-to-date figures
• Payment date and period

When AccBooks submits it: Automatically when you click Finalise payroll run. The FPS is transmitted to HMRC’s systems in real time and AccBooks shows a success or error status within 30 seconds.

Deadline: On or before the payment date. Late FPS submissions attract attention from HMRC and can result in an estimated charge.

Employer Payment Summary (EPS)

The EPS is submitted monthly when you have reductions to apply against your PAYE bill — or when you’re not paying any employees in a period.

Common reasons to submit an EPS:

• SMP/SPP/SAP/ShPP recovery — to claim back statutory pay.
• Small Employers’ Relief — if you qualify (NI bill under £45,000).
• No employees paid this period — to tell HMRC you’re not making any payments.
• Annual leave period — if you stop paying employees temporarily.
• Claiming Employment Allowance — the £5,000 NI reduction for eligible employers.

When AccBooks submits it: Automatically after each month. If you have SMP or other recovery amounts, they’re included automatically. If you have no payroll activity, AccBooks prompts you to submit an EPS to avoid HMRC raising an estimated charge.

Employment Allowance

Most employers with an NI bill under £100,000 in the previous year can claim Employment Allowance — a reduction of up to £5,000 per year on employer NI.

To claim in AccBooks:

1. Go to Payroll → Settings → Employment Allowance.
2. Toggle Claim Employment Allowance on.
3. AccBooks includes the claim in your first EPS of the tax year and applies the £5,000 reduction across the year automatically.

Note: Single-director limited companies where the director is the only employee do not qualify for Employment Allowance.

P45 submissions

When an employee leaves, AccBooks generates a P45. The leaving information is included in the next FPS automatically — you don’t need to file a separate return.

Give the employee their P45 (parts 1A, 2 and 3) — AccBooks generates it as a PDF.

HMRC rejections

If HMRC rejects an FPS or EPS, the error is shown on the payroll run screen. Common rejection reasons:

Error code	Meaning	Fix
1046	NI number invalid	Check employee’s NI number — request their NI card or HMRC letter
7003	PAYE reference not found	Check your PAYE reference under Payroll → Settings
4028	Duplicate submission	Already submitted for this period — check submission history
7014	Invalid tax code	Update the employee’s tax code from their P45 or P6 notice

After fixing the error, click Resubmit on the failed submission.

Year-end

At tax year-end (5 April), AccBooks generates:

• P60s for all employees employed on 5 April.
• The final FPS marked as the last submission of the year.

See the P60 end of year guide for details.