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.
You submit an EPS to notify HMRC you are claiming your Employment Allowance.
The EPS will reclaim statutory payments for you. For this to happen you must use the Absence facility to pay statutory payments.
Read our article Recording absences in a pay run (opens in new tab).
NOTE: You can't reclaim Statutory Sickness Pay (SSP) back from HMRC. The P32 or the EPS doesn't include SSP.
Any EPS submission may not be required by HMRC for each period. Most of the time an EPS will be required.
You should submit the EPS for each period.
If an EPS is not reqired, it won't submit.
Your payroll status screen will inform you if:
- An EPS submission is due
- An EPS submission is overdue
- An EPS submission is not required
- An EPS submission has failed
There are different scenarios where you submit the EPS.
To adjust your payment to HMRC. Or recover statutory payments and any related NI compensation
To let HMRC know that there’s no payment due for this month, previous months, or future months
Read our article Employer Payment Summary (EPS) - Frequently asked questions.
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.
Read our article Tax week and tax month calendar (opens in new tab).
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.
Find out more about the P32 Employer Payment Record report (opens in new tab).
Once you complete a reporting period, you should record your P32 payment details.
If required, you also submit the EPS.
You usually submit an EPS for the first tax reporting period. You can submit another EPS for each reporting period if recovering statutory payments.
You may not need to submit an EPS if there are:
- No Statutory payments to recover for the current period
- No CIS deductions to recover for the current period
If the summary screen shows No EPS Required this means there is nothing to recover.
NOTE: Payroll doesn't make the HMRC payment. You still need to pay HMRC the amount due.
The deadline for payments depends on your payment method:
Bank transfer - the 22nd of the following month
Cheque - the 19th of the following month
Submit the EPS
Within the HMRC Real Time Information (RTI) Scheme area, check the current EPS status.
If the Record Payment / EPS option doesn’t appear, either:
Not all pay runs are complete for the reporting period
All FPS submissions relating to these pay runs have not been successful
NOTE: Read our article Submission errors (opens in new tab).
- Select Record Payment / EPS and enter the required details for your P32 payment:
|Eligible for small employer’s relief
To claim Small Employers’ Relief, choose Yes.
|Eligible for NI Employment Allowance
To claim the NI employment allowance, choose Yes.
|Tax and NI due to HMRC
|The total amount of tax and NI currently owed to HMRC.
|Record amount paid to HMRC
This is the total amount of tax and NI you’re actually paying to HMRC in this payment.
|The date of your payment to HMRC.
|The reference or cheque number associated with the payment, if applicable.
- Select Next, then confirm the balances are correct:
|Amount of CIS Deductions suffered
If you aren't sure, see the HMRC article Construction Industry Scheme (CIS) (open in new tab).
Enter the total CIS deduction amount suffered up to and including the current pay run.
|Total Recovery & Compensation for Statutory Payments
|The year-to-date value recovered from HMRC. The values cover up to and including the current pay run.
The balance up to the previous pay run also appears.
This calculates for you, and includes recovery of any:
- Select Next.
- Select Submit.
A successful submission shows on the Summary screen.
You can now make your payment to HMRC as normal.
If you have Sage Accounting and Payroll, your totals will post to your accounts package. This happens at the end of each tax reporting period. You can check what’s posted by looking at the salary journals
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.
If you print the P32 report in month 2, but haven’t recorded the P32 payment for month 1. The NI Allowance Brought forward value still shows as £5000. It should show £5000 minus the NI value reclaimed in month 1.
This can result in the NI allowance being over-claimed. To avoid this, you must record the P32 payment for month 1 (submit the EPS) and then print the P32 report for month 2.