Under Real Time Information (RTI), employers must submit a Full Payment Submission (FPS) when a payroll is run and payments are made to employees. If you discovered the error before filing your next FPS you can either:
- correct the error by using revised year to date figures on your next regular FPS - this is often the easiest way to handle the correction
- show the adjustment by submitting an additional FPS for the pay period for the employee(s) the error relates to
Whichever option you go for, care must be taken as for instance, you may have to consider the impact on employees' record for National Insurance purposes and you may have to correct year to date information accordingly.
The changes under RTI can be daunting. If you are finding it difficult to keep up to date with your responsibilities as an employer- particularly since the introduction of Real Time Information, feel free to get in touch with your local TaxAssist Accountant who can take care of your payroll for you.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.