RTI ― reporting ‘on or before’ time of payment

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Employment Tax

Guidance

Most employers are required 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 must be transmitted to HMRC on or before the employer makes a payment to employees, ie on or before payday. This is commonly referred to as the ‘on or before’ rule. The ‘on or before’ rule is an important concept to understand.

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 of the exceptions listed below derive from the PAYE regulations and others relate to HMRC statements about what it will accept. The main exceptions are listed in a table on the GOV.UK website.

Payment to employees where earnings are less than £123 per week

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