Report Pay-as-you-Earn (PAYE) employment taxes at the end of each pay period. Each time you post a pay run, we'll report to HMRC with a Full Payment Submission (FPS) using PAYE Real Time Information (RTI) service. If you've set up automatic tax reductions or enter them yourself, we'll also send an Employer Payment Summary (EPS) submission for that pay period.
How it works
Each time you process payroll, we'll calculate how much tax and National Insurance you owe, then send that information to HMRC in an FPS. If you're claiming any reduction to what you owe HMRC, you'll need to submit an EPS. You can set up reclaims so they're automatically included in the EPS each tax month. However, you'll need to claim other reductions yourself by including them in your EPS submission.
If you need to include CIS deductions suffered, or you didn’t pay any employees during a pay period, you'll need to submit these claims yourself using Xero by the end of each tax month.
Before you start
Make sure you: