What is RTI? What is EPS? What is FPS? What is EAS?
This is a freeview 'At a glance' glossary of the abbreviations used in Real-Time Information (RTI) and Pay-As-You-Earn (PAYE) reporting, designed to help employers and businesses who are struggling with their tax terminology.
New entry 'RTINO', a large, shortsighted and dangerous beast or...?
|Additional Statutory Paternity Pay
|BACS Approved Bureau
|Bankers Automated Clearing Service
|Construction Industry Scheme
|Corporation Tax reference
|Employer Alignment Submission
|Employer's contracted-out number
|Employer Payment Summaries
|Earlier Year Update
|Full Payment Submission
|Lower Earnings Limit
|Laugh Out Loud
|National Insurance Contributions
|(employees) National Insurance Number
|(National Insurance) Number Verification Request
|Ordinary Statutory Paternity Pay
|Real-Time Information Notice
|Self Assessment reference
|Statutory Adoption Pay
|Scheme Contracted-Out Number
|Statutory Maternity Pay
|Small employer confusion over RTI
|Statutory Sick Pay
|Service User Number
|Upper Accrual Point
|Upper Earnings Limit
Additional Statutory Paternity Pay (ASPP)
An employee may be entitled to ASPP if their partner has or adopts a child and is entitled to SMP, MA or SAP.
ASPP is payable in addition to any OSPP available. It allows parents more flexibility when arranging time-off to care for children. You are normally able to recover some or all of the ASPP you pay.
BACS Approved Bureau (BAB)
The BACS Approved Bureaux Scheme (BABS) is for computer bureaux that submit transactions through the BACS service on behalf of third party organisations.
Bankers Automated Clearing Service (BACS)
BACS is a United Kingdom scheme for the electronic processing of financial transactions.
Construction Industry Scheme (CIS)
The CIS sets out the rules for how payments to subcontractors for construction work must be handled by contractors in the construction industry.
Corporation Tax Reference (COTAX)
This can also be called the Company Unique Taxpayer Reference and will have been issued by HMRC. It is made up of ten numbers and can be found on the 'Notice to deliver a company Tax Return' (form CT603).
Employer Alignment Submission (EAS)
You must submit under RTI an EAS if you're a large employer (250+ employees) or you have a complex payroll system. You must use an EAS in advance of your first employer's FPS. An EAS can only be submitted once. HMRC will request an EAS if applicable.
Employer's contracted-out number (ECON)
If you operate an approved contracted-out company pension scheme, you are entitled to deduct a lower rate of National Insurance Contributions (NICs) from employees who join and are under State Pension Age. If you set up a company contracted-out scheme HMRC will send you an ECON along with a SCON. Enter the ECON and SCON on your payroll records so they are reported on every FPS.
Employer Payment Summary (EPS)
An EPS submission is sent under RTI to report a reduction in the amount you pay to HMRC or if you haven't paid any employees in a pay period.
Earlier Year Update (EYU)
An EYU submission is sent under RTI to correct, after 19 April any of the year-to-date, totals submitted in your final FPS for the previous tax year.
Full Payment Summaries (FPS)
FPS submissions are sent under RTI each and every time you pay your employees.
Lower Earnings Limit (LEL)
LEL is the point at which employees start to build up entitlement to contributory benefits.
Laugh Out Loud (LOL)
It is important to laugh as it relieves stress. The next time your payroll software goes wrong, have a bit of a giggle: life's too short not to.
Maternity Allowance (MA)
Women who are not entitled to SMP from their employer, or are self-employed may be able to receive MA.
National Insurance (NI)
You pay National Insurance contributions to build up your entitlement to certain state benefits, including the State Pension. The contributions you pay depend on how much you earn and whether you're employed or self-employed. You stop paying National Insurance contributions when you reach State Pension age.
National Insurance Contributions (NICs)
Payments made by employees and employers into NI.
National Insurance Number (NINO)
Refers to (an employee) National Insurance Number. All UK NINOs are nine characters long and follow the format, two-letter (alpha) characters, followed by six number (numeric) characters, followed by one final letter character at the end and are typically written in the form: QQ 12 34 56 A.
(National Insurance) Number Verification Request (NVR)
Submitted to verify or obtain a National Insurance number for new employees. You cannot send an NVR until you have started to send PAYE information in real time; wait a few days after sending your first FPS before sending an NVR.
Ordinary Statutory Paternity Pay (OSPP)
An employee may be entitled to OSPP if their partner has a baby or adopts a child. This replaces their normal earnings and helps them take time off to care for the child or support the mother. You may be able to recover some or all of the OSPP you pay.
PAYE is the system that HMRC uses to collect Income Tax and NICs from employees' pay as they earn it.
Primary Threshold (PT)
PT and ST represent the points from which payment of NICs arises, as opposed to the point at which entitlement to benefit builds up, which is set by the LEL.
Real-Time Information (RTI)
From 6 April 2013, employers will have to start reporting PAYE information to HMRC in real time, referred to as Real-Time Information or RTI. This means that employers (or their accountant, bookkeeper or payroll bureau) will have to:
a) Send details to HMRC every time they pay an employee, at the time they pay them.
b) Use payroll software to send this information electronically as part of their routine payroll process.
Self Assessment (SA)
Reporting your own tax liability to HMRC.
Unique Taxpayer Reference (SAUTR or UTR)
When you register for Self Assessment, HMRC will use the information you send to them to set up the right records for you. They will then send you a ten-digit reference called a Unique Taxpayer Reference (UTR).
Small Employer Confusion over RTI (SNAFU)
Small employers and agents are not always able to meet RTI deadlines due to misunderstanding of the system and confusion over the different terms e.g. 'Is that an FPS, an EPS or an EYU and if so what do I do now that my internet is down?' Penalties may apply, this situation is informally referred to as 'SNAFU'.
Statutory Adoption Pay (SAP)
If an employee adopts a child, they may be entitled to Statutory Adoption Pay (SAP). SAP replaces an employee's normal earnings if they take time off when the adoption takes place. If an employee is adopting a child with a partner, one of them may be entitled to SAP and the other may be entitled to OSPP. You may be able to recover some or all of the SAP you pay.
Scheme Contracted-out number (SCON)
Statutory Maternity Pay (SMP)
If an employee is expecting a baby, she may be entitled to SMP. This replaces her normal earnings to help her take time off around the time of the birth. She also has a statutory right to a minimum amount of maternity leave. You may be able to recover some or all of the SMP you pay.
Statutory Sick Pay (SSP)
SSP is paid to employees who are unable to work because of illness. SSP is paid at the same time and in the same way as you would pay wages for the same period. If you have a high proportion of your workforce off sick at the same time you may be able to recover some or all of the SSP you pay.
Secondary Threshold (ST)
Service User Number (SUN)
SUN is an employer's unique reference on the BACS payment network that identifies both their origination and termination of payments to employees. The use of a SUN indicates a direct BACS payment, as opposed to a normal Internet Banking payment that uses the BACS network only to terminate a payment.
Upper Accrual Point (UAP)
The Upper Accrual Point (UAP) is a threshold (see NIM01202) for the calculation of both State Second Pension and contracted-out NICs rebates. Anyone who is contracted out of the State Second pension only receives a NIC rebate on earnings between the LEL and the UAP.
Upper Earnings Limit (UEL)
The maximum earnings on which National Insurance contributions are payable by employees.