EPS and P32 Payments
Your regular FPS submissions generally provide HMRC with the information it needs to confirm throughout the year that each employee’s PAYE and NIC liabilities are being deducted correctly.
You may also need to make an online submission called an Employer Payment Summary (EPS) when the monthly or quarterly P32 payment to HMRC is due.
The EPS includes supplementary information about the employer’s tax and NI liability at the end of a pay run, including any statutory payment recovery and compensation values, and any values external to the payroll system that will reduce your liability to HMRC.
To make a EPS submission to HMRC during the normal course of the tax year (not at Payroll Year End), carry out the steps that follow after you have completed every pay run in the P32 reporting period.
- 1. Summary window > check the current P32/EPS status.
This status becomes ‘Payment (P32 / EPS) is due’ when all the pay runs in the current P32 reporting period are completed.
- 2. ’Payment (P32/EPS) is due’ button > specify the necessary P32 Payment details.
- 3. Check that the year-to-date balances are correct. Make any necessary adjustments relating to the current P32 reporting period.
|Eligible for small employer’s relief|| Choose Yes to claim small employer relief.
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.
If you qualify for the relief, you are allowed to recover:
* 100% of Statutory Maternity Pay (SMP) / Statutory Adoption Pay (SAP) / Ordinary Statutory Paternity Pay (OSPP) / Additional Statutory Paternity Pay (ASPP) paid to your employees
* An additional 3% compensation amount
Other employers can recover 92% of SMP/SAP/OSPP/ASPP.
For further information about small employer’s relief, click here.
|Eligible for NI Employment Allowance||Choose Yes to claim the NI employment allowance.
Most employers are entitled to a £2,000 NI employment allowance. This offsets your employer NI contributions.
If you qualify for the allowance, you must specify this when you are preparing each P32/EPS.
|Tax and NI due to HMRC||The total amount of tax and NI currently owed to HMRC.|
|Record amount paid to HMRC||The total amount of tax and NI actually being paid to HMRC in this payment.
Refer to the P32 Employer Payment Record report for a breakdown of the Amount Due value.
Make sure not to include any SMP advanced to you.
|Payment date||The date of the payment to HMRC.|
|Ref/Cheque number||The reference number or cheque number associated with the payment, if applicable.|
- 4. Click Next.
- 5. Confirm that the balances specified on this window are correct.
|Amount of CIS Deductions suffered||If you are a limited company, and have had Construction Industry Scheme (CIS) 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 is also displayed.
You can get this value from column E of Form CIS132.
The value will reduce your overall tax liability. However, the system 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 including the current pay run.
The balance up to the previous pay run is also shown.
The relevant statutory payments can include:
– Statutory Sick Pay
– Statutory Maternity Pay (SMP)
– Statutory Adoption Pay (SAP)
– Ordinary Statutory Paternity Pay (OSPP)
– Additional Statutory Paternity Pay (ASPP)
This is calculated automatically.
Further information about statutory payments
- 6. Click Next.
- 7. Confirm company details and your Government Gateway login credentials
- 8. Click Submit.
Now that the EPS submission is complete, check the current status of the submission in the RTI panel on the ‘Summary’ window.
If you use Sage One Accounts as well as Sage One Payroll, totals are posted to Accounts at the end of a P32 reporting period.
You can check what’s been posted by looking at the salary journals.
If the P32 amount is negative, you can specify how you wish receive the refund.
The P32/EPS wizard’s first step includes the HMRC Refunds panel. Here you can specify your preferred refund method.
You can choose either:
- Bank Transfer
If you choose this option, you are prompted to specify bank details which HMRC will use to pay you the refund.
However, you need to contact HMRC yourself to inform them that you want to receive the refund in this way. Otherwise they will not use the bank details.
If you also operate Sage One Accounts, a posting reflecting the refund amount is made to Accounts when you complete the submission.
Subsequently, when you actually receive the refund from HMRC, you can reconcile this amount against the earlier posting.
- P32 Adjustment
If you choose this option, an EPS will not be submitted to HMRC unless the statutory payment recovery values specified in the second step of the wizard mean an EPS is required.
The refund value will be displayed on the P32 report for the next P32 reporting period, and will offset your overall liability in that period.
If you also operate Sage One Accounts, no posting is made to Accounts in the P32 reporting period in which you choose the P32 Adjustment option.
In the next P32 reporting period, because the adjustment offsets your P32 liability, postings are made to Accounts that reflect both the offset amount and the P32 payment amount.
An EPS is not due when:
- No employees have been paid in the P32 reporting period, and you processed the pay runs with all employees set to ‘Do Not Pay’.
In this situation an FPS was submitted in each of these pay runs.
- The year-to-date values the EPS would contain are zero, or have not changed since the previous P32 reporting period.
If there were no active employees in a whole P32 reporting period, you must submit a No Payment EPS for the period, instead of making FPS submissions with employees set to ‘Do Not Pay’.