Employer payment summary (EPS) submissions and P32 payments

Summary

Learn what an EPS includes and how it affects your P32 payments in Sage Payroll.

Description

You submit an EPS to HMRC to report values that reduce your liability. The values can affect the payments you make to HMRC on a monthly or quarterly basis. The P32 shows you the breakdown of these figures and what you owe HMRC.

NOTE: Submit EPSs in chronological order to ensure the recorded values on the P32 are correct.

What is the difference between an EPS and a P32?

An EPS is a submission that goes to HMRC. It includes any figures that reduce your liability to HMRC for that reporting period. Sage doesn't submit this automatically. This is because you're required to answer questions and possibly enter figures manually.

NOTE: The option to submit the EPS appears at the end of each reporting period. Follow the submission process, and HMRC will decide whether a submission is necessary.

▼About the EPS

The EPS:

Tells HMRC if you’re classed as a small employer. This effects how much of any statutory payments made you can recover
Reports the actual values of statutory payments made and how much you're reclaiming
Reports figures of any Employment Allowance claimed from HMRC
Reports figures of any year to date CIS withheld
Submits once per reporting frequency
Only becomes available once all pay runs in the period have been processed

A P32 is a report that shows the breakdown of your liability to HMRC. It uses the figures from your FPS, and offsets them against the figures from your EPS.

▼About the P32

The report is for your reference and doesn't go to HMRC
You can generate it as many times as is needed
Any changes to a pay run you've already processed shows in the next P32 report
For more information, read The P32 Employer Payment Record

How they're linked

A P32 relies on the figures from your EPS, therefore, you need to submit your EPS before generating your P32.

The next period's EPS will then reference what shows on the previous P32.

▼What happens

Submitting the EPS closes the P32 reporting period
Changing the status of your Employment allowance claim on the P32 will update HMRC
The P32 carries a running total of allowance; claimed this period, what's left to claim, and your carried forward balance
It allows you to see any values that carry forward from a previously closed P32 period. This happens when you correct a pay run from a previous P32 period
Shows the year-to-date values of your Statutory payments and compensation reclaimed

Resolution

How do I submit the EPS?

Select Summary from the menu bar.
Under the HMRC Real Time Information (RTI) Scheme section, identify the heading EPS submission.
Select Action and then either Record payment / EPS.

We have more information on the P32 report. Read either; Exporting your P32 or Record your P32 payment details and submit an employer payment summary (EPS).

Why is the option called Record payment / EPS?

Sage combines two processes into one action. There are three windows to complete before you can submit your EPS. Review the information at each stage to ensure you submit the correct information and therefore your P32.

P32 PAYMENT

Answer the questions relating to Small employers relief and Employment allowance. What you select will change what you owe HMRC
You can adjust the Record amount paid to HMRC figure if required. For example, your balance with HMRC is in credit. This records in Sage for future reference and posts to Sage Accounting if you have Payroll integration enabled
Select a Payment date. This is either the date you have already paid, or are planning to pay them. It’s again saved in Sage Payroll and Sage Accounting if applicable

BALANCES

The only field you can edit is Amount of CIS Deductions suffered under Year to Date (incl. this period). Leave blank if you don’t operate a CIS scheme
The system generates the Total Recovery and Compensation for Statutory Payments. This is based on what you’ve already processed, and if you're a Small Employer

POST P32 VALUES

Not every period requires an EPS. You’ll see if HMRC requires one here
The pay runs within this reporting period determine this figure. Including the options you selected on the previous two windows

Once you’re happy with the information, select Submit.