Full Payment Submission (FPS)

Definition

The Full Payment Submission (FPS) is a key component of the pay as you earn (PAYE) system used by employers in the UK to report payroll information to HM Revenue and Customs (HMRC) in real-time. 

What is a Full Payment Submission?

The Full Payment Submission provides HMRC with real-time data about employees’ earnings, tax deductions, and National Insurance contributions, allowing for accurate tax calculation and compliance.

The FPS contains various details about employees’ pay and deductions, including:

• Employee identifiers: Such as name, address, date of birth, and National Insurance number.
• Payment details: Including gross earnings, taxable pay, and any bonuses or commissions.
• Deductions: Such as income tax, National Insurance contributions, student loan repayments, and other deductions.
• Employer details: Such as the employer’s PAYE reference number, name, address, and contact information.

Employers are required to submit an FPS to HMRC each time they pay their employees. This ensures that HMRC receives up-to-date information about employees’ earnings and deductions. Additionally, the FPS is part of HMRC’s Real Time Information (RTI) system, which requires employers to report payroll information in real-time. 

Employers are responsible for ensuring that their FPS reports are accurate and submitted on time to HMRC. Failure to submit FPS reports, or submitting incorrect information, may result in penalties or fines imposed by HMRC.

Example of a Full Payment Submission

ABC Company submits a Full Payment Submission to HMRC. In the FPS, ABC Company reports the following payroll information for its employees:

Employee details:

• Employee 1: John Smith, National Insurance Number: AB123456C
• Employee 2: Jane Doe, National Insurance Number: CD789012E

Payment details:

• Gross pay: £2,000 for John Smith and £2,500 for Jane Doe
• Taxable pay: £1,800 for John Smith and £2,200 for Jane Doe
• Income tax deduction: £200 for John Smith and £250 for Jane Doe

Employer details:

• PAYE reference number: 123/ABC456
• Company name: ABC Company Ltd
• Address: 123 Main Street

ABC Company submits the FPS electronically through its payroll software, ensuring that HMRC receives accurate and up-to-date payroll information.