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EPS and P32 Payments

This topic explains the EPS submission you may have to make at the end of a P32 reporting period.

If you are submitting a final EPS at payroll year end, click here to read about the special submission wizard for that purpose.


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.

The P32 payment amount due to HMRC may be adjusted because of one or more of the following, which you must specify in the EPS Wizard if they apply:

  • Statutory payments recovered
  • NIC compensation on statutory payments
  • Advance funding from HMRC for tax refunds and statutory payments
  • CIS deductions

In addition, at Payroll Year End you must submit a Final EPS.

 

An EPS is not due if…

  • 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.

    (Bear in mind, however, that if you made no FPS submissions in the P32 reporting period, an EPS is required to confirm that no employees have been paid.)
  • When the year-to-date values the EPS would contain are zero, or have not changed since the previous P32 reporting period.

To submit an EPS/make a P32 payment


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.
 
This checklist can help you to make sure you’ve covered all the necessary stages when you are preparing and submitting an EPS.

 
  • 1. Open the Summary screen (or the relevant pay run’s Completed Pay Run screen).
  • 2. 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.
  • 3. Click the ’Payment (P32/EPS) is due’ button > Specify the necessary P32 Payment details.

Check that the Year-to-Date balances are correct. Make any necessary adjustments relating to the current P32 reporting period.

Field Definition
Eligible for Small Employer’s Relief Select Yes if you are eligible for Small Employer’s Relief (SER).

You qualify for SER 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 SER, 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 SER, click here.
Period The reporting period corresponding to the HMRC reporting frequency you set up in Business Settings.

The period is specified in the title of the EPS/P32 wizard screen.
Amount (Tax and NI) Due to HMRC The total amount of tax and NI currently owed to HMRC.
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/Chq Number The reference number or cheque number associated with the payment, if applicable.
Paid From The bank account from which the payment to HMRC is made.
  • 4. Next button > Confirm that the correct P32 payment amount is specified.
  • 5. Next button > Confirm company details and your Government Gateway login credentials
  • 6. Click Submit.

Now that the EPS submission is complete, check the current status of the submission in the RTI panel on the ‘Summary’ screen.


Postings to Accounts


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.