Full payment submission (FPS)
How to send your payroll information to HMRC. You must send your company, employee and employee payment details, each time you pay your employees. This is know as a Full payment Submission (FPS).
The FPS contains;
- Starter and leaver information
- Employee information such as name, address, NI number and tax code
- Employee payment and deduction information
- Tax, NI and student loan contributions
- 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.
- You must complete your pay run in full and update records before you make the FPS
- 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.
- Process your pay run as normal, once you confirm the pay values are correct, click Complete Pay Run.
The Confirm Pay Values option appears and prompts you for your company details and Government Gateway credentials.
- Enter or check your details, then click 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 both Accounting and 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, 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, click Resolve Issue.
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:
- Click the Pay Runs tab and select the relevant pay run.
- Click View FPS, then click 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.