(Or: Why HMRC Should Really Offer Loyalty Points)
RTI — Real Time Information — is HMRC’s way of making sure they know exactly what you’ve paid your employees, the moment you pay them. It’s clever, efficient, and absolutely unforgiving.
So what happens if you miss an RTI submission?
Do alarms go off?
Do HMRC agents descend from the ceiling Mission-Impossible-style?
Does your payroll software start quietly judging you?
Not quite. But you will feel the consequences.
Let’s walk through what actually happens — and how to avoid the dreaded HMRC letter that ruins your afternoon coffee.
⏰ First: What Counts as “Missing” an RTI Submission?
HMRC says you must submit your FPS (Full Payment Submission):
👉 On or before the day you pay your employees.
If you submit it after payday, or forget it entirely, HMRC classifies it as late or missing.
Missing an EPS (Employer Payment Summary) — usually due by the 19th of the following tax month — also counts.
📨 Step 1: HMRC Notices (They Always Notice)
As soon as a submission is late or missing, HMRC’s RTI system does what it does best:
📡 It flags it.
Your PAYE account will now show a mismatch between:
- What HMRC thinks you owe
- What you actually owe
Because if no FPS arrives, HMRC assumes:
“Oh! They paid everyone as normal and just didn’t tell us. We’ll estimate the bill.”
Spoiler: Their estimated bill is rarely kind.
⚠️ Step 2: Penalties Start to Build
HMRC can issue late filing penalties if:
✔ You’re late more than once in a tax year
✔ Your payroll is running and you simply didn’t submit
✔ You keep sending late RTI files without a reasonable excuse
Penalties depend on business size, but they typically start at:
- £100 per month for small employers
- More for larger payrolls
And HMRC won’t just fine you — they’ll also send a stiff letter phrased like you’ve deeply disappointed them.
🧾 Step 3: Interest Can Be Added Too
If HMRC’s estimated liability is higher than reality (and it usually is), you may also get:
💸 Interest charges
💸 Surcharges
Just for good measure.
📝 Step 4: You Must File the Missing FPS Anyway
Even if it’s late, HMRC still requires you to send:
- The original FPS, with correct figures
- The actual payment date
- And, if necessary, a reason for the late filing
Only when HMRC receives the correct data will they update your account and remove incorrect estimates.
❤️ The Love Payroll Bit
At Love Payroll Limited, we don’t let missed submissions happen.
But if you come to us after the panic moment — we still fix it:
✔ We find out exactly what’s missing
✔ Submit the correct FPS or EPS
✔ Contact HMRC where necessary
✔ Correct your PAYE account
✔ Make sure your next submissions are on time, every time
RTI is strict, but not scary — when you’ve got help.
Because payroll shouldn’t feel like an episode of “Will HMRC Fine Me Today?”
It should feel calm, clear, and completely under control.
