Chapter 3 - 3.1 - Real Time Information

Question 1

What do employers use the PAYE system for?

Answer 1

To deduct income tax and NIC on their employee’s employment income

Question 2

Most employers must report PAYE information in real time. What does this mean?

Answer 2

Each time the employer pays an employee, the employer must submit details of the pay and deductions to HMRC using payroll software

Question 3

When and how must the employer submit the PAYE information by?

Answer 3

The employer must submit the information on or before the day the employee is paid, using a Full Payment Submission (FPS)

Question 4

When may an Employer Payment Summary (EPS) be required?

Answer 4

If the employer reclaims:
- Statutory maternity, paternity or adoption payments
- The employment allowance