GovTech UK HMRC Digital PAYE Real-Time Reporting

HMRC RTI API Integration

• HMRC RTI (Real-Time Information): payroll reporting requirement since 2013.
• FPS (Full Payment Submission): submitted every payday.
• EPS (Employer Payment Summary): submitted monthly (statutory payments claimed -- SMP, SPP, SAP).

HMRC RTI API

• 1FPS submission (employee pay run data -- NI, PAYE tax, gross pay, hours worked),
• 2EPS submission (employer statutory payment recovery),
• 3NPS query (HMRC National Insurance and PAYE Service -- employee tax code lookup),
• 4RTI validation (HMRC validates FPS before accepting -- error codes must be handled),
• 5HMRC EDI Gateway (older HMRC submission format -- some employers still on EDI -- migration to REST API).

FPS timing

• FPS must be submitted on or before each pay day.
• Late FPS triggers HMRC penalty (GBP100-GBP400 per month depending on employer size).

HMRC PAYE API for employer tax code management

• 1P6 (HMRC sends new tax code for employee -- payroll platform receives P6 via HMRC API automatically),
• 2P9 (HMRC sends tax code in bulk at April year-end -- all employees),
• 3P45 (employee leaves -- P45 submitted via HMRC API),
• 4P60 (year-end certificate -- generated from FPS data),
• 5Starter checklist (new employee -- determine tax code before first P6).

Tax code automation

HMRC P6 received via API -- tax code updated in payroll platform automatically before next pay run (no manual data entry).

HMRC personal allowance

updated in April each year -- platform must apply new personal allowance from April pay run.

HMRC CIS API for Construction Payroll

HMRC Construction Industry Scheme (CIS): mandatory for UK construction contractors.

CIS API

(1) CIS verification (contractor must verify subcontractor status before first payment --

HMRC API returns deduction rate

20% standard, 30% unverified, 0% gross payment status), (2) CIS monthly return (monthly return of all subcontractor payments and deductions), (3) CIS deduction statement (annual statement for subcontractors -- evidence of CIS deductions suffered).

CIS gross payment status

subcontractors can apply for gross payment status (pay full amount to HMRC via Self Assessment, no CIS deduction).

ClickMasters CIS module

automated verification, monthly return, and deduction statements -- full CIS compliance within payroll platform.

HMRC MTD Payroll 2026 Integration

• HMRC Making Tax Digital for payroll (MTD Payroll): HMRC digitisation extending to payroll data reporting.
• MTD Payroll API (2026): (1) real-time payroll submission (FPS via MTD API -- replacing legacy BACS file submission), (2) digital employer records (HMRC payroll data accessible via MTD API -- employer can query their HMRC PAYE position), (3) MTD compatible software (HMRC requires payroll software to be MTD compatible for 2026 MTD Payroll -- HMRC software recognition programme), (4) payroll data integration with MTD ITSA (Income Tax Self Assessment -- employee income data flows from HMRC PAYE to HMRC ITSA for self-employed or higher-rate taxpayers).

ClickMasters

MTD Payroll API integration with HMRC recognition programme registration.