Employer payment summary (EPS) submissions and P32 payments

The employer payment summary (EPS) is the submission that you can use to report values to HMRC that you can’t include on the full payment submission (FPS). These values affect the payments you make to HMRC on a monthly or quarterly basis.

You must also submit an EPS to notify HMRC that you’re going to claim your employment allowance. You can do this directly from the company settings, when you select the eligible for employment allowance check box.

Failing to record your EPS may lead to over claiming NI Employment allowance.

There are different scenarios where you submit the EPS. You may need to adjust your payment to HMRC because you have statutory payments to recover and any related NI compensation. You may also need to let HMRC know that there’s no payment due for this month, previous months or future months.

To help you with any queries you may have, we’ve also put together a list of common questions.

Before you submit an EPS

Ensure you’ve processed and updated all pay periods in the relevant tax month.

Tax months run from the 6th of one month to the 5th of another, for example 6 April to 5 May.

You can only submit an EPS from the 20th of the current month until the 19th of the following month, For example Month 1 submissions can be done between the 20th of April and the 19th of May.

The P32 Employer Payment Record report

We recommend that you view or print the P32 Employer Payment Record report at the end of each tax reporting period. This report shows a breakdown of your total liability due to HMRC for the period. You can use the values to help you determine whether or not you need to submit an EPS.

To record your P32 payment details and submit an EPS

Once you complete a reporting period, you should record your P32 payment details and if required, submit an EPS. The program will detect if there is an EPS due and send it accordingly when you go through the Record Payment/EPS wizard.

You would normally submit an EPS for the first tax reporting period, and then each reporting period if you’re recovering statutory payments. An EPS may not be required, if you’re not recovering statutory payments or CIS deductions in the current tax period.

The payment is not automatically sent through Payroll, so you still need to pay HMRC. You must pay HMRC the amount due by the 22nd of the following month, if by bank transfer or the 19th if you’re paying by cheque.

  1. Complete every pay run in the tax reporting period.
  2. Click the Summary, then within the HMRC Real Time Information (RTI) Scheme area, check the current EPS status.

If the Record Payment / EPS option doesn’t appear, either not all pay runs are complete for the reporting period, or all FPS submissions relating to these pay runs have not been successful.

  1. Click Record Payment / EPS and enter the required details for your P32 payment:
Eligible for small employer’s relief To claim small employers’ relief, choose Yes.

  • You qualify for this relief if you paid or were liable to pay, total gross Class 1 NICs, excluding Class 1A and Class 1B, of £45,000 or less in the qualifying year.
Eligible for NI Employment Allowance To claim the NI employment allowance, choose Yes.

  • Most employers are entitled to a £5,000 NI employment allowance and is offset against your employer NI contributions.
  • If you qualify for the allowance, you must specify this when you record the P32 payment details, each tax reporting period.
Tax and NI due to HMRC The total amount of tax and NI currently owed to HMRC.
Record amount paid to HMRC This is the total amount of tax and NI you’re actually paying to HMRC in this payment.

  • For a breakdown of the Amount Due value, refer to the P32 Employer Payment Record.
  • Do not include any statutory payment funding advanced to you.
Payment date The date of your payment to HMRC.
Ref/Cheque number The reference or cheque number associated with the payment, if applicable.
  1. Click Next, then confirm the balances are correct:
Amount of CIS Deductions suffered If you’re a limited company and have had Construction Industry Scheme deductions taken from payments you received during the year for work in the construction industry, enter the total CIS deduction amount up to and including the current pay run.

  • The year to date amount up to the previous pay run also appears.
  • You can get this value from column E of Form CIS132.
  • The value reduces your overall tax liability. However, the Payroll does not do this automatically. You need to manually deduct the amount from your liability.
Total Recovery & Compensation for Statutory Payments If you pay statutory payments to employees, this window shows the year to date value of these payments recovered from HMRC, up to and including the current pay run.

  • The balance up to the previous pay run also appears.
  • This is calculated automatically and includes recovery of any:

    * Statutory maternity pay (SMP)
    * Shared parental pay (ShPP)
    * Statutory adoption pay (SAP)
    * Ordinary statutory paternity pay (OSPP)
    * Additional statutory paternity pay (ASPP)
  1. Click Next.
  2. If No EPS Required shows, check the P32 payment value. If an EPS is due, check the and your Government Gateway login credentials.
  3. Click Submit.

Once a submission is complete you should check the status is successful in the Summary screen. If a submission fails, to find out what to do to resolve the problem, click Resolve Issue.

You can now make your actual payment as normal to HMRC.

If you’ve signed up to Accounting as well as Payroll, your totals are posted to your accounts at the end of each tax reporting period when you process your P32 payment. You can check what’s been posted by looking at the salary journals.