When managing payroll in the UK, understanding FPS vs EPS payroll UK requirements is essential for staying compliant with HMRC Real Time Information (RTI) rules.
Employee pay, tax, and National Insurance are reported through an FPS on or before each payday. Adjustments such as statutory payments, Employment Allowance claims, or periods where no employees were paid are reported through an EPS. Using the correct report at the right time helps you avoid penalties and ensures accurate tax calculations.
FPS vs EPS Payroll UK: What’s the Difference?
An FPS must be submitted on or before each payday, regardless of how often employees are paid. Each payment requires a new FPS. In contrast, an EPS is only submitted when adjustments are needed.
- Frequency: FPS is submitted every pay run; EPS is occasional
- Deadline: FPS is due on or before payday; EPS is usually due by the 19th of the following tax month
- Content: Full payroll details are included in an FPS; adjustments and claims are reported in an EPS
- Purpose: Real-time payroll data is provided through FPS; PAYE liabilities are updated or corrected through EPS
What is a Full Payment Submission?
A Full Payment Submission (FPS) must be sent to HMRC every time employees are paid. Real-time updates on earnings, tax deductions, and National Insurance contributions are provided.
Accurate deductions are ensured, employee records are kept up to date, and PAYE compliance is maintained when an FPS is submitted.
An FPS includes:
- Employee details such as name, address, tax code, and National Insurance number
- Pay information including gross pay, tax, National Insurance, statutory payments, and student loan repayments
- Starters, leavers, and employment changes
What is an Employer Payment Summary?
An Employer Payment Summary (EPS) is used to report information that cannot be included in an FPS. This includes reclaiming statutory payments, claiming Employment Allowance, reporting the Apprenticeship Levy, CIS deductions, or notifying HMRC when no employees were paid.
PAYE liability is adjusted and the correct credits are applied through an EPS.
An EPS includes:
- Statutory payment reclaims
- Employment Allowance claims
- Apprenticeship Levy amounts
- CIS deductions suffered
- Nil payment notifications
An EPS is only required when relevant and is typically submitted by the 19th of the following tax month.
What Happens if You Miss a Deadline?
HMRC penalties can be issued when FPS or EPS deadlines are missed. Fines may be applied to late FPS submissions, depending on business size and how often delays occur.
Certain reason codes for late submissions are allowed by HMRC, and penalties may be reduced in some cases. Deadlines should be met to keep payroll accurate and compliant.
How Direct Payroll Services Can Help
FPS and EPS submissions are simplified by Direct Payroll Services through automation, up-to-date compliance, and direct HMRC integration.
Issues are identified early, and expert support is provided to help PAYE requirements be met, accuracy maintained, and penalties avoided.