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Employer payment summary (EPS) submissions and P32 payments

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Summary

What information is included in an EPS and how this affects your P32 payments in Sage Payroll.

Description

You submit an EPS to HMRC to report values that you cannot include on a Full Payment Submission (FPS). These values can affect the payments you make to HMRC on a monthly or quarterly basis.

When you record the EPS submission you are:

  • Claiming your Employment Allowance (The P32 carries a running total of allowance left to be claimed, claimed this period and  the balance carried forward to the next period) from HMRC
  • Reclaiming statutory payments made to employees (for this to happen you must use the Absence facility to pay statutory payments) from HMRC.
  • Advising the HMRC of the year to date value of any CIS withheld
  • Submitting the EPS also records the HMRC payment values in your Business Cloud Accounts and clears your liabilities (you must have the Payroll integration to Accounts active for this to happen)

EPS/P32 submissions must be made in chronological order to ensure the recorded values on the P32 are correct

Read our article Recording absences in a pay run.

 NOTE: You can't reclaim Statutory Sickness Pay (SSP) back from HMRC. The P32 or the EPS doesn't include SSP.

Resolution

An EPS submission may not be required by HMRC for each period, when recording the payment the program will advise if an EPS submission will be sent to HMRC. (Most of the time an EPS submission will not required).

You should submit the EPS for each period as this also:

  • Closes the P32 reporting period and updates the status of your Employment allowance claim on the P32.
  • Allows you to see any values that have been carried forward from a previously closed P32 period (this occurs if corrections  have been made to a pay run in a previous P32 period)
  • Shows your year-to-date values of your Statutory payments and compensation reclaimed


Before you submit an EPS

  • Make sure you’ve processed and updated all pay periods in the relevant tax month.
  • A tax month runs from the 6th of one month to the 5th of another. For example, 6 April to 5 May.
  • You should submit an EPS from the 20th of the current month until the 19th of the following month. For example, Month 1 submissions are between the 20th of April and the 19th of May.

For more information on this, read Tax week and tax month calendar.

The P32 Employer Payment Record report

  • You should view or print the P32 Employer Payment Record report at the end of each tax reporting period.
  • The report shows a breakdown of your total liability due to HMRC for the period.
  • The P32 will also show you the value of reclaimed statutory payments.
  • This reduces your HMRC liability. 


If you are ready to submit your EPS, you can read Record your P32 payment details and submit an employer payment summary (EPS).


If you want to check anything first, read Employer Payment Summary (EPS) - Frequently asked questions.


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