Employer Payment Summary (EPS) - Frequently asked questions

▼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 have two options:

Bank Transfer

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

TIP: Ensure the bank information you enter here’s correct. HMRC will update these details in your record. HMRC will only issue a refund if the values they hold on record for your business say one is due.

If you also subscribe to Sage Accounting, the refund amount posts to your accounts. This happens when you complete the payroll submission. When you actually receive the refund, reconcile this amount against the earlier posting.

P32 Adjustment

HMRC doesn't always require an EPS. For example, if there are no statutory payments to recover. Any refund appears on the P32 report in the next tax reporting period. It offsets against your HMRC liability in that period.

TIP: Note you can’t offset the final P32 submission of the tax year. Contact HMRC to arrange this refund.

In the next P32 tax reporting period, postings show in your accounts. This reflects both the offset amount and the P32 payment amount.

▼What if I submit an EPS containing an error?

You can’t resubmit an EPS submission.

If the error relares to a statutory payment, you must correct this by editing the relevant pay run. The next EPS will show the correction.

If you enter the wrong value for CIS Deductions suffered, you can correct this at the end of the next P32 tax reporting period. Enter the correct YTD value within the next EPS you submit.

Sometimes, HMRC asks you to resubmit an earlier EPS. Use HMRC Basic Tools for this.

▼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, you complete month one pay run and then edit an employees pay. If you haven't sent the EPS for this period, the edited values will update for month one.

If you have sent the EPS, the changes will reflect in the next period.

In month two, the month one NI and PAYE changes are in the P32 report. Changes show under Amendments from corrections made in earlier periods.

You may have offset a previous reclaim of your P32 liability in an earlier month from future P32s. You see this 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 in the current tax year. You would need to either wait until the end of the tax year or restart and reprocess payroll. Ensure you select the correct reporting frequency.

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

You may forget to record the P32 payment for a previous tax reporting period. This can cause issues with the NI Allowance brought forward value.

For example, you print the P32 report in month two, but haven’t recorded the P32 payment for month one. The NI Allowance Brought forward value still shows as £5000. It should show £5000 minus the NI value reclaimed in month one.

This can result in you overclaiming the NI allowance. To avoid this, you must record the P32 payment for month one (submit the EPS) and then print the P32 report for month two.

▼What do I do if HMRC wants me to resend an earlier EPS?

You can't use Sage Payroll to resend an EPS.

You must do this using HMRC Basic Tools.

HMRC provides support for this software themselves.