Share this content
16

Can you report RTI quarterly to HMRC

Didn't find your answer?

Hello :)

I've been studying HMRC's payroll pages and can see that you can request to pay PAYE quarterly if under a certain threshold. 
 

But I'm wondering and can't seem to see in the guidance.. can you REPORT quarterly to HMRC? 
 

Say you have a simple 1 director payroll. Is there anything stopping you having a pay calendar that runs 1 March - 30 June (and so on) with a payment date say at the end of each quarter? 
 

If you did, would you still be required to send EPS reports for the tax months within that period where there were no payments? 

If you can run a quarterly pay calendar and report quarterly, why don't more people do it? I've seen loads of director payrolls and almost all of them have been monthly pay, what's the reason for that?

Thanks!

Replies (16)

Please login or register to join the discussion.

avatar
By Wanderer
18th Feb 2021 16:25

Debittomycredit wrote:

If you can run a quarterly pay calendar and report quarterly, why don't more people do it? I've seen loads of director payrolls and almost all of them have been monthly pay, what's the reason for that

Have you read all the outrage regarding CJRS claims for annual schemes?
BIG risk to run a quarterly scheme, who knows what the next set of rules may say?
Thanks (1)
Replying to Wanderer:
avatar
By Debittomycredit
19th Feb 2021 11:56

Thanks I’ll look into that.

Thanks (0)
avatar
By Paul Crowley
18th Feb 2021 17:26

No
Every scheme needs a submission every month

HMRC need to know even if you choose not to pay
Universal credit and all that

Thanks (1)
Replying to Paul Crowley:
avatar
By Debittomycredit
19th Feb 2021 11:55

Thanks Paul, appreciate this no nonsense answer

Thanks (0)
avatar
By Hugo Fair
18th Feb 2021 17:28

There are several not directly related questions in the OP ...

* ".. you can request to pay PAYE quarterly if under a certain threshold."
You can run a payroll whenever you like, but it's much simpler if you stick to a regular frequency - of which HMRC recognises the following (each of which can be reported via an FPS under RTI): Weekly, Fortnightly, 4-weekly, Monthly, Quarterly, Bi-annually, Annually (plus options for One-off or Irregular).
So nothing unusual/special (from a PAYE perspective) in a Quarterly pay frequency.

* ".. can you REPORT quarterly to HMRC?"
Depends on what you mean by 'report'. You don't need to file an FPS for a month in which payroll wasn't operated; but you do need to tell HMRC what's going on via the EPS. However you don't need to file this every month (in the above circumstance) if you check the relevant data items in it: e.g. 'no payment dates from' and 'no payment dates to'.

* ".. why don't more people do it?"
Why are you supposing that people would want to? There are innumerable reasons that may affect a particular director's choice of pay frequency ... one of which is mentioned by Wanderer. I can't begin to guess at all the possible reasons that could affect an individual.

BTW, I see you say that you've "been studying HMRC's payroll pages" ... presumably not very thoroughly as all the above is amongst the basic info therein.

Thanks (1)
Replying to Hugo Fair:
avatar
By Debittomycredit
19th Feb 2021 11:58

I’ve been absolutely diligent in reading the guidance but some knowledge always comes from experience and practical application, not from reading.

Yes all the information is probably there but as a newcomer to processing all I’m asking for is a bit of advice as to the practicality of a director being paid quarterly.

I’m sure if you think back, even when you started there were some questions that you asked people with experience and didn’t just get from literature. If you’re going to get upset about people asking questions on here why do you log on and answer them?!

Back to your answers in order:

1. Your answer isn’t relevant, I was talking about paying PAYE to HMRC. There wasn’t a question attached to that statement.
2. I wondered if there was any way to elect with HMRC to have a quarterly scheme, so they don’t expect anything more than quarterly FPS returns. I believe you can do this for an annual scheme. I guess the answer is no. Re the info to give on the EPS for the period of no payments - I suppose it depends on your software as to how to actually do this so it’s a software question, thanks.
3. Simplicity. Some directors want the least faff least admin least cost option. If you could make one FPS return once a quarter that would be easier. Bang the amount to director’s loan on the payment date reported under RTI and it can be bank transferred to them in whatever fashion and timing they want. I’m not saying why doesn’t everyone do it, I’m saying I’ve very rarely seen it so is there some catastrophic result of doing this that makes no one want to do it. From what I’ve read above the answer to that is no there isn’t, it’s a perfectly viable option in the right circumstances.

Thanks (0)
Replying to Hugo Fair:
avatar
By Debittomycredit
19th Feb 2021 12:05

My reply seems to have disappeared so I’ll re-post a shortened version.

I’ve translated your answer and deduced that no, there’s no catastrophic result of running a quarterly payroll scheme for a director. In the right circumstances me with the right info on your EPS returns it’s a perfectly viable option. Thanks

Thanks (0)
Replying to Debittomycredit:
avatar
By Debittomycredit
19th Feb 2021 12:06

And* not ‘me’

Thanks (0)
My photo
By Matrix
19th Feb 2021 12:33

Debittomycredit wrote:

Hello :)

I've seen loads of director payrolls and almost all of them have been monthly pay, what's the reason for that?

Thanks!

Since this is the easiest way to do it - RTI is required monthly, thresholds are monthly, Directors also like to pay themselves/staff monthly, no need for accounting adjustments, year end doesn’t matter, push of a button in the software, keeps fees down, all the same for all clients set in April when thresholds change reduces error, work, energy, time, client queries etc.

If the Directors want to withdraw the money quarterly they can.

What are the benefits you perceive in quarterly? March to June would be 4 months and straddle a tax year.

Your fees for Director payroll, as a result of you offering such a service, would be higher than mine.

Thanks (2)
Replying to Matrix:
avatar
By Debittomycredit
19th Feb 2021 12:44

A no nonsense response again here, thank you.

March - June should have said April - June!!!!!!! And like you point out straddling the tax year would be silly so payment date would have to be after 5th April.

If in line with the tax year, a one director company with no other employees, for which you could elect to report quarterly (which I now understand you can’t so it’s a moot point) I would say is less admin less time less hassle than reporting monthly. Less logging on and pressing the button. 4 times instead of 12. That was my thinking. For a director, the thresholds are usually annual not monthly so that would also be fine.

It was just an idea.

Appreciate the feedback on practicality.

Thanks (0)
Replying to Debittomycredit:
avatar
By Debittomycredit
19th Feb 2021 12:47

Still think there’s something in it for the micro director/owner.

4 payslips not 12.

Gets more of the CT deductions secured up front as well. I like the idea of annual for that. If trade ceased you’d still have your full year salary in.

Something in it.

Thanks (0)
Replying to Debittomycredit:
My photo
By Matrix
19th Feb 2021 13:39

Debittomycredit wrote:

Gets more of the CT deductions secured up front as well. I like the idea of annual for that. If trade ceased you’d still have your full year salary in.

Something in it.

How so? Annual only works in arrears.

If you are logging in 12 times for each Director then I can see why it is such a burden for you. So don’t - use Moneysoft instead and do them all at once.

Thanks (0)
Replying to Matrix:
avatar
By Debittomycredit
19th Feb 2021 14:07

Why does annual only work in arrears?

I’ll look at moneysoft it’s been mentioned a lot to me. Does it have a solution to send payslips securely?

Thanks (0)
avatar
By Paul Crowley
19th Feb 2021 12:41

'Say you have a simple 1 director payroll. Is there anything stopping you having a pay calendar that runs 1 March - 30 June (and so on) with a payment date say at the end of each quarter? '

Do you really mean 1 April
PAYE works to 5th

Most directors do not have payments to make if things organised for tax efficiency

Agree Matrix
single organised director monthly is a really small task

Thanks (0)
Replying to Paul Crowley:
avatar
By Debittomycredit
19th Feb 2021 12:53

Should’ve said April yes. Payment date is the relevant thing isn’t it so as long as the 4 quarterly payments landed in the tax year it would be fine.

Fairly simple to run monthly yes but anything that saves hassle I’m down with (hassle for the client and myself).

Would save sending 12 secure payslips, just send 4 instead.

No logging on end of every month just every quarter.

Thanks (0)
Replying to Debittomycredit:
avatar
By Paul Crowley
19th Feb 2021 13:10

I may be wrong, but as I understand it a report goes in to say nothing paid.
If not penalties happen

Thanks (1)
Share this content