Full Payment Submission

Important - BACS Payments: If you pay your employees by BACS using either the 'STDBACS RTI' or the 'Standard 18' format (selected on the Payroll - Utilities - Set Options form), you must create your BACS file in the Payroll - Payment Reports - Produce & List BACS command before sending your Full Payment Submission to HMRC.

When these formats are used, the Produce & List BACS command creates a random reference 'string' that is included in the payment file and is used to create a cross reference ‘hash’ number for each employee included in the Full Payment Submission. This is used by HMRC to reconcile the BACS payment data against the pay details in the Full Payment Submission. If you do not create the BACS file before sending the FPS, HMRC will not be able to do the reconciliation.

This submission includes pay details for the pay period: for example payments, Income Tax, NI, and other deductions such as student loans. It also includes details of new starters and leavers, and settings from the employee records entered on the Additional Information tab of the Payroll - Processing - Details & Bank form. Each employee's address is also included.

You send at least one FPS per month to HMRC. You will be informed via the 'Generic Notification Services (GNS)' - a service for Real Time Information messages - if an FPS is not received. The GNS is part of the Data Provisioning Service (which is used to notify you of tax code changes, for example).

The Wizard

The Full Payment Submission wizard is designed to enable the file for the submission to be quickly created before it is submitted to HMRC using Pegasus Online Filing Manager. Payroll groups that are in the same tax year can be included in the same FPS.

First Page

The first page of the wizard includes initial choices for the submission, for example whether the FPS is the first one to be created or whether it is a second or subsequent FPS. You can also select to include only certain employees if they have been paid at different times to other employees.

Box	Description
Process	You can choose to only see a report without creating an FPS file or see a report and also create the file. You can choose the report destination from the Publisher form before the file is created. If you choose to create a file you will be asked to confirm this after you have started the wizard process.
Report Type	The summary report includes the same details that are displayed on the second page of the wizard. The detailed report includes each employee's details for the pay period, including their title, name, date of birth, Income Tax and National Insurance paid this period.
FPS Type	A 'Regular FPS' contains these employees: Those who have been paid in the current pay period. New employees who joined in the current pay period who have not yet been paid. Both new and existing employees who are currently on unpaid leave (the Unpaid Absence indicator on the employee record has been selected). Unless this indicator is selected for employees who have not been paid in the current pay period, they will not be included in the FPS. The 'First FPS' option was used to align employee records held by employers with those held by HMRC when Real Time Information was first introduced. The option should now be ignored.
I only want to include specific employees in the FPS	Select to include only certain employees in an FPS. This option can be used for ad-hoc FPS submissions where one or more employees were not included in the FPS for the pay period. The submission will then include only the selected employees; the details for the other employees will not be sent to HMRC again. You should not normally select this option if you are submitting your first FPS because all employees should be included in the submission.
Compress the submission	This is to compress the file in Pegasus Online Filing Manager before it is submitted to the Government Gateway. There is a maximum file-size limit that can be submitted - approximately twenty five Megabytes. Selecting this option will reduce the size of the file and thereby help with the speed of the submission to HMRC. The submission will also be quicker even if the file size is much smaller than the maximum size allowed. For example, when submitting an FPS , if it contains approximately ten thousand employees then the uncompressed size of the XML file will be about eighteen Megabytes. Even if the uncompressed size of the XML file were less than the 25 Megabytes, compression of the submission will give significant performance improvements when submitting to the Government Gateway; so compression can be a benefit even if your submission does not exceed the maximum limit.
Specify a late PAYE reporting reason	You must submit your Full Payment Submission on or before each pay day. If the FPS is not sent in time a 'Late PAYE reporting reason' must be included in the FPS when it is sent. HMRC will use the reason supplied to prevent messages and penalties being issued where they should not be. The permitted reasons are: A (Notional payment: Payment to Expat by third party or overseas employer) B (Notional payment: Employment related security) C (Notional payment: Other) D (Payment subject to Class 1 NICs but P11D/P9D for tax) F (No working sheet required; Impractical to report) G (Reasonable excuse) H (Correction to earlier submission). This can be set for individual employees if necessary, or for all employees included in an FPS. To update individual employee records, tick the Late PAYE Reporting Reason box on the Additional Info tab of the Payroll - Processing - Details & Bank form for those employees. Then choose the relevant reason from the list. When the FPS is sent the late reporting reason will be included for those employees only. To use the late reporting reason for all employees in the selected payroll groups, tick the Specify a late PAYE reporting reason box on the Payroll - RTI Submissions - Full Payment Submission form. Then choose the relevant reason from the list. When the FPS is sent the late reporting reason will be included for all employees. Any reason selected for an individual employee will override what is selected here. Any late reporting reason used will be cleared by the Payroll - Utilities - Update command, which completes a pay period ready for the next pay period.

Box

Description

Process

You can choose to only see a report without creating an FPS file or see a report and also create the file. You can choose the report destination from the Publisher form before the file is created.

If you choose to create a file you will be asked to confirm this after you have started the wizard process.

Report Type

The summary report includes the same details that are displayed on the second page of the wizard.

The detailed report includes each employee's details for the pay period, including their title, name, date of birth, Income Tax and National Insurance paid this period.

FPS Type

A 'Regular FPS' contains these employees:

Those who have been paid in the current pay period.
New employees who joined in the current pay period who have not yet been paid.
Both new and existing employees who are currently on unpaid leave (the Unpaid Absence indicator on the employee record has been selected). Unless this indicator is selected for employees who have not been paid in the current pay period, they will not be included in the FPS.

The 'First FPS' option was used to align employee records held by employers with those held by HMRC when Real Time Information was first introduced. The option should now be ignored.

I only want to include specific employees in the FPS

Select to include only certain employees in an FPS. This option can be used for ad-hoc FPS submissions where one or more employees were not included in the FPS for the pay period. The submission will then include only the selected employees; the details for the other employees will not be sent to HMRC again.

You should not normally select this option if you are submitting your first FPS because all employees should be included in the submission.

Compress the submission

This is to compress the file in Pegasus Online Filing Manager before it is submitted to the Government Gateway. There is a maximum file-size limit that can be submitted - approximately twenty five Megabytes. Selecting this option will reduce the size of the file and thereby help with the speed of the submission to HMRC. The submission will also be quicker even if the file size is much smaller than the maximum size allowed.

For example, when submitting an FPS , if it contains approximately ten thousand employees then the uncompressed size of the XML file will be about eighteen Megabytes. Even if the uncompressed size of the XML file were less than the 25 Megabytes, compression of the submission will give significant performance improvements when submitting to the Government Gateway; so compression can be a benefit even if your submission does not exceed the maximum limit.

Specify a late PAYE reporting reason

You must submit your Full Payment Submission on or before each pay day. If the FPS is not sent in time a 'Late PAYE reporting reason' must be included in the FPS when it is sent. HMRC will use the reason supplied to prevent messages and penalties being issued where they should not be.

The permitted reasons are:

A (Notional payment: Payment to Expat by third party or overseas employer)
B (Notional payment: Employment related security)
C (Notional payment: Other)
D (Payment subject to Class 1 NICs but P11D/P9D for tax)
F (No working sheet required; Impractical to report)
G (Reasonable excuse)
H (Correction to earlier submission).

This can be set for individual employees if necessary, or for all employees included in an FPS.

To update individual employee records, tick the Late PAYE Reporting Reason box on the Additional Info tab of the Payroll - Processing - Details & Bank form for those employees. Then choose the relevant reason from the list. When the FPS is sent the late reporting reason will be included for those employees only.
To use the late reporting reason for all employees in the selected payroll groups, tick the Specify a late PAYE reporting reason box on the Payroll - RTI Submissions - Full Payment Submission form. Then choose the relevant reason from the list. When the FPS is sent the late reporting reason will be included for all employees. Any reason selected for an individual employee will override what is selected here.

Any late reporting reason used will be cleared by the Payroll - Utilities - Update command, which completes a pay period ready for the next pay period.

Second Page

Unless you select the I only want to include specific employees in the FPS option, the second page summarises the number of employees who will be included, the Income Tax, National Insurance for both the employer and employee, and the student loan repayments. If you do select the I only want to include specific employees in the FPS option the second page is where you select the required employees.

Leavers

The FPS includes employees who are marked as leavers on the Payroll - Processing - Leavers form in this pay period:

An employee marked as an 'L' leaver is included in the FPS as normal, even if they do not receive any pay. The leave date is included in the submission to inform HMRC that the employee left your employment in this period.

An employee marked as a 'D' leaver is included in the FPS in the pay period in which they are marked as a leaver. The leave date is included in the submission to inform HMRC that the employee left your employment in an earlier pay period. Employees who left in the previous tax year are included.