Annual Payers and RTI

Monthly notifications not required for once a year payments

For those contractors that pay themselves a 'one off' salary payment each year, there will be no requirement for their companies to complete a monthly nil payment notification provided they tell HMRC.

HMRC have confirmed that the 'annual payer' system will remain under Real Time Information (RTI). For employees (including directors) that are paid their salaries and wages in a single tax month each tax year, employers can inform HMRC's employer helpline on 08457 143 143 that they are an 'annual payer' thereby reducing their RTI reporting requirements.

In the latest RTI update that can be accessed via HMRC, PAYE tax/Class 1 NICs payment deadlines and late payment penalties (LINK), HMRC have confirmed that:

“If all payments are paid to your employee(s) in a single tax month during the year, you can choose to become an annual payer. This means that you pay HMRC once a year on the due date and you don't have to complete a monthly nil payment notification. However you must tell HMRC so that your records can be updated and to avoid them contacting you about unpaid amounts.”