Full payment submission (FPS)
Under Real Time Information (RTI), you must send your company and employee payment details to HMRC. You can quickly and easily submit this information on a full payment submission (FPS), using Sage One Payroll.
The FPS is the submission you must make to HMRC each time you pay your employees and contains:
- Details of all payments made to employees in the pay run.
- Employee income tax and NI contributions in the pay run.
- Details of any starters or leavers from the pay run.
- Employee details, such as name, NI number and tax code.
HMRC tracks this information throughout the tax year to confirm that each employee’s PAYE and NIC liabilities are being deducted correctly.
If you have active employees, but aren’t paying them in a particular pay run, you must still process your payroll and submit an FPS. To do this, in Edit Pay you must select the Do not pay check box. When you submit the FPS for this pay run, it informs HMRC that the employees are still in your employment, but aren’t being paid this time.
You must submit the FPS to HMRC on or before the date that you pay your employees. If you submit the FPS after the pay date, HMRC want to know the reason for your late submission and you must select the late reason before you can continue.
HMRC use the reason supplied to help determine whether any late filing penalties are due, so it’s important that you select the correct reason. For further information refer to the FPS late reasons section.
If you’re unsure of what reason to use, you should contact the HMRC Employer Helpline on 0300 200 3200.
If you’re registered as an employer, but currently have no employees, you must still notify HMRC that no payment is due. You can do this is by sending a nil payment EPS at the end of the tax month.
- 1. Process your pay run as normal, once you confirm the pay values are correct > Complete Pay Run.
The Confirm Pay Values? option appears and prompts you for your company details and Government Gateway credentials.
If you’ve entered your details before and chosen to store the information for future submissions these don’t appear automatically. To check the details are correct, clear the Use saved HMRC login check box.
- 2. Enter or check your details > Confirm.
A message confirms the pay run is complete, the FPS submits automatically and a summary of the completed pay run appears. If the submission fails you should check the error code and resolve it.
If you’ve signed up to a Sage One accounts service, as well as Sage One Payroll, your totals are posted to your accounts each time you process a pay run. You can check what’s been posted by looking at the salary journals.
It’s important that you submit your FPS on time, which is on or before you pay your employees.
Sometimes a late submission is necessary, so if you submit your FPS after the deadline, you’ll see a number of reasons to choose from. Choosing the right reason lets HMRC know why your submission is late.
When you complete your pay run, Sage One Payroll compares your pay date with your system date and automatically prompts you to enter a late reason if you’re beyond your deadline.
|Late reporting reason code||Description of why the payment is reported late|
|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.|
|E||Micro Employer using temporary ‘on or before’ relaxation.|
|F||Impractical to report work done on the day.|
|H||Correction to earlier submission.|
When a submission is successful, it appears with a green check mark in the summary of the completed pay run. You can also view the status for each attempted submission you make.
If a submission fails, to see any error and resolve it, click Resolve Issue.
The most common reason for failure is: Error 1046: HMRC doesn’t recognise your company details.
Most FPS failures can be resolved by making sure the following details are correct before you submit the FPS:
- Business name
- PAYE Reference
- Accounts Office Reference
- Government Gateway user ID
- Government Gateway password
Before you repeat the submission, check these details. Also make sure that your Government Gateway account is active.
After you complete a pay run, a detailed breakdown of the pay run appears.
To download a copy of the FPS submission file sent to HMRC, from the View FPS drop-down menu choose Download XML. Each piece of information in the file is tagged in a way that HMRC’s software can understand.
You can also easily view each attempted FPS submission you’ve made:
- 1. Pay Runs tab > select the relevant pay run.
- 2. View FPS > View FPS History.
The status shows if the submission is successful or not. If it fails, you should hover over the submission error to display the full details.
Don’t worry if you need to correct a pay run and you’ve already submitted an FPS, the next FPS submission automatically provides HMRC with details of the updated values.
You may occasionally receive a National Insurance Number Verification Request (NVR) response from HMRC after submitting your FPS. The response appears at the top of the relevant employee’s record.
HMRC reviews NI numbers that are sent with, or omitted from, each FPS submission. If they identify incorrect NI numbers, HMRC tells you the correct details through an NVR response. If the correct NI number isn’t yet available, they may simply ask you to delete the current number from the employee record.