RTI ― reporting ‘on or before’ time of payment

Produced by Tolley in association with

Employment Tax

Guidance

Most employers have to report payroll information to HMRC electronically in real time under real time information (RTI). See the Real time information guidance note. The most usual report made to HMRC under this system is the full payment submission (FPS) which has to be transmitted to HMRC shortly before or at the time the employer makes a payment to employees. This is commonly referred to as the ‘on or before’ rule.

Although the RTI system at large represented a huge change for employers, requiring changes in their software systems and payroll practices, the ‘on or before’ rule is probably the one aspect of RTI that causes most ongoing difficulties for many employers.

This guidance note looks at the number of the problem areas that employers regularly encounter in trying to apply the ‘on or before’ rule and draws together exceptions to the rule and HMRC’s concessions and guidance.

Exceptions to ‘on or before’ rule

Some

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Vince Ashall

Payroll Consultant & Trainer at VA Payroll Services

Involved in payroll for more years than I care to remember! Initially in the NHS, where i oversaw the development of the NHS's bespoke payroll system (SPS Standard Payroll System), and latterly in the private sector. Served for 13 years as a MNT for a private sector defined benefit pension scheme. Have had articles published in payroll publications and and provide updates for various publishers. Fellow of the CIPP and gained a MSc in Payroll & Business Management in 2002. Now a self employed payroll and pensions consultant

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