Real Time Information (RTI) and annual PAYE schemes
July 9, 2013
In the second addition of a series of blogs on Real Time Information (RTI), payroll manager Margaret Merrifield looks at the PAYE schemes and how to make annual changes.
If you send too many Full Payment Submissions, you may jeopardise your scheme’s annual status.
If you have a PAYE scheme that pays staff/directors on an annual basis, you must only send a Full Payment Submission (FPS) for the month in which you make the annual payment. You can send as many FPSs as necessary as long as all the payment dates are within the same tax month.
If you have no return to make in the month you would normally make the annual payment, you should instead send an Employer Payment Summary (EPS) indicating no payments have been made during the period. If you send an FPS for a month, other than the agreed payment month, HMRC will change the payment month on its systems which could cause your scheme to stop being treated as ‘annual’.
has advised that it has received a number of FPSs from existing annual schemes for months in which they do not make their annual payment.
An annual scheme is one where both of the following apply:
– all the employees are paid annually
– all the employees are paid at the same time (same date).
HMRC has published examples showing how to change the month of payment for an annual scheme without upsetting the system:
This example is based on an employer with an annual scheme that currently pays in December (month 9). The employer wants to change the payday for all employees to an earlier tax period – October (month 7):
– the employer should submit an FPS on or before payment in October and no later than 5 November
– no FPS should be submitted in month 9
– no nil EPS is required for tax periods where no payment is made.
The employer wants to change the payday for all employees to a later tax period – March (month 12):
– the employer should submit a nil EPS for December tax period by 19 January (as our systems were expecting a return)
– an FPS should be submitted on or before payment to employees in March (month 12) and no later than 5 April
– no nil EPS is required for the intervening tax periods where no payment is made.
For further information please contact Margaret Merrifield on 01524 62801.