Your UK company's year with HMRC · Lesson 3 of 5

Payday and the FPS

1:08 · Captions: English, Arabic, French and Chinese.

Every payday, a UK employer works out PAYE tax and National Insurance, and tells HMRC in real time. In this lesson, Olivia runs October's payroll and files it.

What you'll learn

  • Run the month's payroll: PAYE tax and National Insurance
  • Connect your Government Gateway, once
  • File the Full Payment Submission to HMRC

Step by step

  1. Run Payroll & File RTI — Olivia pays Tom and Amara at the end of each month. Payroll is in the HR tools.
  2. The Government Gateway, once — Payroll reports go to HMRC through her Government Gateway. She connects it once, and SnapLedger keeps it safe.
  3. October, both employees ready — October's pay period. Both employees have their National Insurance number and tax code, so they're ready for HMRC.
  4. Tax and National Insurance worked out — She runs payroll. Snappy works out each person's PAYE tax and National Insurance, and posts the payroll to the books.
  5. What each person costs — Next to each net pay is the employer's National Insurance: the company's own cost, on top of the salary.
  6. The FPS, filed — She confirms the figures and files the Full Payment Submission. HMRC accepts it.

Payday, worked out and reported in one place. Next: the year end, and Corporation Tax.