Please note that FreeAgent's payroll functionality won't be available if you have an unincorporated landlord account or if you're preparing your accounts using the cash accounting basis.
RTI applies to employers and limited companies
Real time information (or RTI) applies to anyone who is registered for PAYE, or needs to be. This means that if you employ staff or you work through a limited company that pays you a salary, RTI applies to you. If you are a sole trader or a partnership and don’t employ staff, then RTI does not apply to you. You might also want to check out HMRC’s guidelines.
How RTI works in FreeAgent
When you run and report payroll each month, FreeAgent reports your PAYE and NI in real time to HMRC. The payroll page for that month will then be updated to show that your RTI was filed successfully.
Making your final (Month 12) submission is very straightforward in FreeAgent. Run and report Month 12 as usual and FreeAgent will send an FPS (Full Payment Submission) to declare your pay and close down your payroll year. If you're expecting to see a series of Month 12 questions, don't worry, these are no longer required by HMRC.
If you file RTI late, you need to provide a reason
If you file RTI late, you will need to choose a reason from a list provided by HMRC before you run and report that month's payroll.
Making a new monthly submission after the end of the tax year
This will apply if you need to make a payroll submission for the previous tax year after 19th April. To file the missing submission, please follow these steps.
Once you have done this, you will see confirmation that a Full Payment Submission has been submitted in the 'Payroll Summary' panel in FreeAgent. Please note that FreeAgent does not support other types of amended Full Payment Submissions.
There may be times when you are due a repayment from HMRC for PAYE and NI. If this is the case, you will usually need to either deduct the amount you are owed from your PAYE/NI liability in the following month or contact HMRC's employer's helpline to request a refund. Further information is available at gov.uk.
Closing payroll scheme
If you wish to submit an EPS or FPS to close your pay scheme we suggest doing that directly through HMRC's Basic Tools. You can still use FreeAgent to submit your FPS, which is the submission that tells HMRC how much you've paid your staff, but then you would also make an EPS/FPS submission using Basic Tools to tell HMRC that you've closed your payroll.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services.
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