Employer payment summary (EPS) - Frequently asked questions

To help you with any queries you may have with P32 payments and employer payment summary (EPS) submissions, we’ve put together a list of common questions.

When should I submit a nil payment EPS?

Every time you pay your employees, you must notify HMRC by sending an FPS on or before the pay date. If you don’t have any tax and national insurance (NI) to pay in the period or you currently have no active employees on your payroll, you must still notify HMRC that no payment is due. To do this you can send a nil payment EPS at the end of the tax month.

What if the P32 payment amount is negative?

If the P32 payment amount is negative, you can specify how you want to receive the refund.

You can use the HMRC Refunds panel to set your preferred refund method.

You can choose either:

  • Bank Transfer

    If you choose this option, you can then enter your bank details, which HMRC use to pay you the refund.

Please ensure the bank information you enter here is correct as HMRC will update these details in your record. HMRC will only issue a refund if the values they hold on record for your business indicate one is due.

If you also subscribe to Accounting, when you complete the submission the refund amount also posts to your accounts. When you actually receive the refund from HMRC, you can reconcile this amount against the earlier posting.

  • P32 Adjustment

    If you choose this option, Payroll doesn’t submit an EPS to HMRC unless this is required to include the statutory payment recovery values specified mean an EPS is required.

    The refund value appears on the P32 Employer Payment Record report for the next tax reporting period and is offset against your overall liability in that period.

Please note you can’t off set the final P32 submission of the tax year, if you chose refund in the final submission period, please contact the HMRC directly to arrange this refund.

If you also subscribe to Accounting, no posting is made to your accounts in the tax reporting period in which you choose the P32 Adjustment option.

In the next P32 tax reporting period, postings are then made to your accounts service that reflect both the offset amount and the P32 payment amount.

What if I submit an EPS in error?

You can’t resubmit an EPS submission. If you make a mistake entering the value for CIS Deductions suffered, you must correct this at the end of the next P32 tax reporting period. To do this correct YTD values.

If you’ve entered the wrong date or value for the P32 payment, this information isn’t submitted to HMRC. However, if you also subscribe to Accounting the totals post to your accounts and would need to be corrected manually.

If HMRC advises you to resubmit an EPS that you previously submitted, you must do this on HMRC Basic Tools.

What if I correct a pay run in a previous tax reporting period?

The P32 Employer Payment Record shows any corrections made to earlier periods.

For example, if you complete month 1 pay run and then amend pay, the P32 report for month 1 shows the original values submitted to HMRC.

Any amendments to NI or PAYE show on the P32 report in the P32 Amendments from corrections made in earlier periods section for month 2.

If you select to offset a previous reclaim of your P32 liability in an earlier month from future P32s, rather than receiving a refund direct from HMRC, this shows in the HMRC Refunds brought forward from previous P32 periods section.

What if the wrong reporting frequency is set up?

You can’t change your reporting frequency once you start to process pay for the current tax year. You would need to either wait until the end of the tax year or, restart and reprocess ensuring that the correct reporting frequency is selected.

Why doesn’t the NI Allowance brought forward value reduce?

If you haven’t recorded the P32 payment for a previous tax reporting period, this can cause issues with the NI Allowance brought forward value on the P32 Employer Payment Record.

If you print the P32 report in month 2, but haven’t recorded the P32 payment for month 1. The NI Allowance Brought forward value still shows as £3000, rather than £3000 minus the value that was reclaimed in month 1.

This can result in the NI allowance being over claimed. To ensure that the NI allowance calculates correctly, you must record the P32 payment for month 1 and then print the P32 report for month 2.