You are required to inform HMRC of your payroll liabilities on or before you pay an employee. PAYE (Pay As You Earn) tax reporting is submitted to HMRC as PAYE RTI (Real Time Information).
To make it easier and ensure that an FPS filing is submitted each time you run payroll, it's recommended that you get set up for RTI before running payroll. Even if you don't pay an employee for a tax month (from the 6th of the month to the 5th of the following month), you're required to submit an EPS filing.
You need to setup your HMRC Settings to make sure your payroll tax information is submitted to HMRC.
Before you run your payroll, add your Government Gateway credentials for the PAYE online service on the gateway. PaySuite collects the necessary information and sends it to HMRC via the Government Gateway. By entering your credentials here, you won't have to do it each time you finish running payroll and need to submit a filing to HMRC.
After you register your business, you should have received your user ID and password to the Government Gateway. Within 28 days of receiving your credentials, you can test it by visiting www.gateway.co.uk. If you do not activate within 28 days, your credentials won't be valid and you will need to get new credentials.
To enter your HMRC details
- Enter your HMRC credentials, this step can be completed by selecting Company Cog > Employer Settings > HMRC Settings.
- Enter your Employer PAYE Reference and Payment Reference (AORef).The 1st part of the PAYE reference is 3 digits and this is the tax office number that deals with your PAYE, for example 123. The 2nd part of the reference comes after the forward slash and is your tax office employer, for example, /AB456. Enter any letters in your upper case.The Accounts Office reference (AORef) is 13 characters long, for example 123PA00045678.
To enter your gateway credentials
- Enter the HMRC user ID and HMRC password. HMRC provides the ID, which is a random combination of 6 letters and numbers. For example, R7AYA1. The password initially provided by HMRC and is a random combination of 12 letters and numbers. For example, 8XK3SA26U1G4. When you change your password, make sure that it is no more than 12 characters in length.
- Please enter your contact details.
- Select Save.