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Record your P32 payment details and Employer Payment Summary submission

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Summary

An explanation of the Record Payment/EPS option and the effect this can have in Sage Payroll.

Description

After you’ve processed all periods within a month or quarter (depending on your HMRC reporting frequency), you’ll have the option to Record Payment/EPS. Select this option each time you complete a month or quarter. Sage will determine whether you need to submit an Employer Payment Summary (EPS).

There are three screens to complete the process.

P32 PAYMENT

  • Confirm if you’re eligible for Small Employers Relief and Employment Allowance
  • Record the amount you’re paying to HMRC and your payment date. This is for your own records and not included in the EPS

BALANCES

  • Add any CIS suffered
  • Review the recovered amount of Statutory Payments

SUBMIT EPS

  • Confirm submission details and the amount posted to Sage Accounts if applicable

NOTE:

Make any payment due to HMRC outside of Sage Payroll.

Resolution

Even if you believe an EPS isn’t necessary, you must go through the process for Sage to assess this.

Sage won’t 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’s nothing to recover.

NOTE:

You can't pay HMRC directly through Payroll. 

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

  1. Select Summary from the menu bar.
  2. Within the HMRC Real Time Information (RTI) Scheme area, identify the EPS submission heading. 
  3. Select Actions, then Record Payment / EPS.

    NOTE:

    If you don't have the Actions or Record Payment / EPS option, read the section I can't submit my EPS.

  4.  Enter the required details for your P32 payment:
    ▼Details of the required fileds
    Eligible for small employer’s relief

    To claim Small Employers’ Relief, choose Yes.

    You qualify for this relief if your total gross Class 1 NICs in the qualifying year were £45,000 or less. 
    This figure excludes Class 1A and Class 1B National Insurance contributions.

    For more information, read Small Employers' Relief.
    Eligible for NI Employment Allowance

    To claim the NI employment allowance, choose Yes.

    Most employers can claim a £5,000 NI employment allowance. This offsets against your employer's NI contributions.

    If you qualify, you must specify this when you record the P32 payment details.

    For more information, read Employment allowance.
    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.

    For a breakdown of the Amount Due value, refer to the P32 Employer Payment Record.

    Don’t include any statutory payment funding advanced to you.
    Payment date The date of your payment to HMRC.
    Ref/Cheque number The reference or cheque number associated with the payment, if applicable.
    Preferred HMRC refund method/option
    Only visible if a refund is due
    		 How you want the refund handled.

     

  1. Select Next, then confirm the balances are correct:
    ▼Details of the required fields
    Amount of CIS Deductions suffered

    If you aren't sure, read the HMRC article Construction Industry Scheme (CIS) at gov.uk.

    Enter the total CIS deduction amount suffered up to and including the current pay run. 

    The year to date amount up to the previous pay run also appears.

    You can get this value from column E of Form CIS132.

    The value reduces your tax liability. Payroll updates this for you. You need to deduct the amount from your liability.
    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:

    • Statutory Maternity Pay (SMP)
    • Shared Parental Pay (ShPP)
    • Statutory Adoption Pay (SAP)
    • Ordinary Statutory Paternity Pay (OSPP)
    • Additional Statutory Paternity Pay (ASPP)

     

  1. Select Next.
  2. Select Submit.

The Summary screen will then display if the submission has been successful.

At this point, your journals will post to Sage Accounting if you use it and have enabled automatic postings.

I can't submit my EPS

I don't have the Actions option

This means you haven’t processed all periods within your reporting period.

I have the Actions option but I don't have Record Payment / EPS

An FPS or EPS submission has failed. Read our article Submission errors.