RTI Terminology

‘There are a few new terms being used in regards to RTI and need explaining what they mean’.

EAS – Employer Alignment Submission:

Larger employers will have to submit an Employer Alignment to HMRC as soon as possible after they receive the invitation to join RTI. The EAS must be sent to HMRC before the employer can send their Full Payment Submission (FPS) for the first pay period under RTI. Additionally, EAS employers must send extra FPSs for employees who have been paid in the tax year, and will not be paid again in the first month, such as:

Individuals who have left since the start of the tax year.
Individuals who are irregularly paid.
Individuals who are paid less frequently than monthly.
EPS – Employer Payment Summary:
Employers will use the Employer Payment Summary (EPS) to report

Statutory Payments recovered
NIC Compensation on Statutory Payments
CIS Deductions suffered
Deductions an employer is entitled to make under the Regional Employer NICs Holiday for New Businesses

This submission will allow HMRC to offset these against any payments due. The submission will also include:

Employer information (HMRC office number, PAYE reference, Accounts Office reference and the income tax year to which the submission relates)
Scheme information – in particular where the PAYE scheme has ceased
Note: If no payments are made within a pay period and no FPS is submitted, the employer will submit an EPS to show that no return or payment is due for that pay period.

FPS – Full Payment Submission:
This is the name for the regular online submissions to HMRC, containing pay and deduction details for the employees paid as part of that submission. The first FPS ( for businesses who don’t have to submit an EAS), also contains details of all employees for that tax year, including starters, leavers and people who haven’t been paid yet that tax year. See for the data required as part of Payroll Alignment. The second and subsequent FPSs only contain the pay and deduction details for the employees paid that period.

‘Hash #’

To bring the data back together from the RTI & Bacs Submissions, HMRC will use the hash. Payroll software such as Qtac Payroll will be responsible for inserting a cross reference hash into the FPS for employees that are paid by direct BACS. When your payroll software passes information to the Bacs Software in preparation for submission to Bacs, it will need to include the four character random string. The Bacs software will then build the random string into field 7 of the Standard 18 file. The hash is constructed from the 4 character random string, sort code of the originators bank, the sort code of the recipient’s bank, the amount of the payment in pence. A 256 bit secure hash algorithm (SHA-256) is used to produce the hash.
‘National Insurance Number Verification’
As part of the Payroll Alignment process, HMRC will be offering a new NINO verification service, where HMRC will confirm which National Insurance Number should be used for a particular individual.

‘Split Scheme’

Basically, a split scheme is the situation where “it is impossible or impracticable to consolidate the full PAYE scheme into a single submission for alignment”. Example scenarios include a single PAYE Scheme which is processed in separate payroll software, or by different payroll bureaus, or where the scheme contains employees with different pay frequencies, and where consolidation would be impracticable. There is another scenario, where the submission would exceed the maximum size attachment permitted by the Government Gateway, but this is unlikely