After you finish processing your payroll each month, you need to check how much tax and national insurance (NI) is due to pay to HMRC. To find this value quickly and easily, simply print the P32 in Sage 50 Payroll, to see a breakdown of the amount you owe.

You should print the P32 Employer Payment Record report in Sage 50 Payroll at the end of every tax month and check the values to determine if you need to submit an employer payment summary (EPS) to HMRC.

The P32 includes all updated values, and it's important to note that each tax month runs from the 6th of a month to the 5th of the following month.

Print the P32 Employer Payment Record

1. Click Reports then click Period End.
2. Select Form P32 - Employer Payment Record then click Print.
3. Enter the required tax month range then click OK.
   NOTE: To ensure the values on the report are correct, run the P32 for one month at a time, for example from month 1 to month 1. If you pay HMRC quarterly, add the relevant P32 values together for that quarter.
4. If you don't use e-Banking, continue to step 5.
   If you use e-Banking, you're prompted to record employment allowance, employer's NI and total amount due:
   
   • If you use the Collector of Taxes wizard, you must clear this check box then click OK
   • If you don't use the Collector of Taxes wizard, leave this check box selected then click OK
5. Ensure your printer details are correct then click OK then click Close.

You've successfully printed the P32 for the specified tax month and should check the information on the report against the payments you've made to HMRC.

What information is on the P32?

The table below shows the information that appear on the P32.

The P32 also provides details of any funding received from HMRC and other statutory payments made to employees.

NOTE: If funding figures appear in this section, you must manually recalculate the total amount due. Read more> 

Print the P32 for a previous tax year

1. Click Payroll then click Change Process Date.
2. Change your process date to the relevant tax year.
3. Click Reports then click Year End.
4. Select the relevant tax year.
5. Select Form P32 - Employer Payment Record then click Print.
6. Enter the required tax month range then click OK.
   NOTE: To ensure the values on the report are correct, run the P32 for one month at a time, for example from month 1 to month 1. If you pay HMRC quarterly, add the relevant P32 values together for that quarter. 

    

7. If you use e-Banking, when you run the P32 you're asked if you want to Record employment allowance, employer's NI and total amount due.
   If you use the Collector of Taxes wizard to pay HMRC, you must clear this checkbox then click OK.
   NOTE: If you leave this box selected, the figure recorded for the month in within the HMRC Payments tab of the company settings is doubled and causes employment allowance to be calculated incorrectly. To resolve this, you need to manually amend the figure showing in HMRC payments. 
8. Ensure your printer details are correct.
9. Click OK then click Close.

Check the values are correct

The Payment Summary History Part 1 - By Date shows values updated through Sage 50 Payroll which you should reconcile to your P32. If you don't agree with the values on your P32, run this report and reconcile it to your pre-update reports, to find any discrepancies. For example, your payment summaries part 1 and 2.

Print the Payment Summary History Part 1 - By Date

1. Click Criteria then in the Exclude Employees who are section, select Historical Leavers.
2. Clear all other check boxes then click OK.
3. Click Clear then click Reports.
4. Click Employee then click Payment Summary History Part 1 - By Date then click Print.
5. Leave the Employee Reference boxes as default.
6. In the Payment Period drop-down lists, select Is and All.
7. In Processing Date,  enter a date range from day six of one month to day five of the next.
   For example, to print the report for month 1, enter from 6 April to 5 May.
8. Click OK then check your printer details are correct.
9. Click OK then click Close.

Why are the values incorrect?

You should print and check the P32 before you make a payment to HMRC. HMRC calculate your liability based on the information included in the full payment submission (FPS) which you submit each time you process your payroll. If you're reducing this because you've reclaimed statutory payments, you must check the value is correct on the P32 and submit an EPS. This informs HMRC of any adjustments to your liability.

NOTE: If you need to roll back or restore a backup and reprocess to correct any of the following discrepancies, this can affect your submissions to HMRC > 

Where do the values in the HMRC Payments tab come from?

When you run the P32, your software automatically posts values to a table named HMRC Payments in the following scenarios:

• If you don't use e-Banking, the values automatically update into the HMRC payments tab
• If you use e-Banking, you're prompted to Record employment allowance, employer's NI and total amount due with the following message

• If you use the Collector of Taxes wizard, you must clear this check box, the values are recorded in the HMRC Payments tab when you use the Collector of Taxes wizard
• If you don't use the Collector of Taxes wizard, select the checkbox beside Record employment allowance, apprenticeship levy, employer's NI and total amount due for this period and your values are posted to the HMRC Payments tab

To view the values in this table:

1. Click Company, then click Settings.
2. Click the HMRC Payments tab.

If the monthly values are incorrect, you can manually enter the correct value for each month from your P32 report. Alternatively, you can run the P32 again on a month by month basis and then check the values are correct.

How do I enter funding information from HMRC so it appears on the P32?

Enter details of funding received from HMRC:

1. Click Company then click Settings.
2. Click the Tax Funding tab then enter any funding received for each month for tax refunds.
3. In Statutory Funding, enter any funding received for each month in the Statutory Payments Funding Received table.
4. Click OK.

The funding that you've entered appears on the P32, and you must add this to the Total Amount Due figure to pay to HMRC.

NOTE: You no longer need to record any funding received on the EPS. 

How does Sage 50 Payroll account for a negative value on the P32?

The negative amount appears on the P32, the value isn't transferred to the Payments of Tax/NICs table in HMRC Payments. This is because the table shows payments you've made to HMRC and it only accepts values equal to or greater than zero.

The type of submission you send to HMRC, depends on which month the negative value calculates for:

• Month from one to 11 - You should leave the value in the Payments of Tax/NICs table as zero. So that HMRC know you're not making a payment to them, you must submit an EPS. The following month you must manually reduce the value you're paying HMRC by the negative value from the previous period
• Month 12 - You should leave the value in the Payments of Tax/NICs table as zero, and you must submit an EPS which records the fact that HMRC owe the money to the company

Why doesn't the P32 reconcile to the Payment Summary (Part 3)?

You shouldn't use the Payment Summary Part 3 to reconcile the values on the P32. This report contains P45 information and manually entered year to date values which aren't included in the P32.