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Record your P32 payment details and submit an employer payment summary (EPS)

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Summary

How to submit an EPS and P32 payments in Sage Payroll.

Description

The P32 report shows a breakdown of your liability to HMRC.

Any reduction of your liability shows in an EPS submission.

Any payment due to HMRC is made outside of Sage Payroll.

This article explains the steps involved in submitting an EPS and a breakdown of the information required.

Resolution

Once you complete a reporting period (monthly or quarterly), you should record your P32 payment details.

If required, you can 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’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.

    Enter the required details for your P32 payment:
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 would like the refund to be handled.
  1. Select Next, then confirm the balances are correct:
Amount of CIS Deductions suffered

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

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.

If you have Sage Accounting and Payroll and have enabled automatic postings, your journals will now also posted.

I can't submit my EPS

I don't have the Actions option

This means you still have pay runs that fall within the same reporting period that haven't been processed yet.

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

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