Employer Payment Summary

Employer Payment Summary (EPS): When to Submit?

If you are a UK-employer running PAYE for your payroll, you are bound to do certain tasks every month. Along with other tasks whilst paying your employees, you need to report their pay, and NI & tax deductions to HMRC in Full Payment Submission (FPS). After sending your FPS, send an Employer Payment Summary (EPS) on or before the 19th of the next tax month.

Let’s find out what is EPS, when you need to submit an EPS, what’s the deadline to send an EPS, what to do after sending it and what if you don’t pay any employees in a tax month.

 

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What is Employer Payment Summary (EPS)?

EPS is used by an employer who is using PAYE as part of the payroll. It is used to report those values to HMRC that can’t be included in the FPS. You need to submit an EPS, not FPS if you haven’t paid any employee in a tax month. Bear in mind that the value included in EPS can modify the payments you make to HMRC on a monthly/quarterly basis.

 

When do you Need to Submit an EPS?

You need to submit EPS by the 19th of every month in the following circumstances:

When do you Need to Submit an EPS

  • If you reclaim statutory maternity, adoption, paternity or shared parental payments
  • If you can reclaim CIS deductions as an ltd
  • You claim National Insurance contributions holiday for previous tax years
  • Claim the Employment Allowance (once a year)
  • If you pay an Apprenticeship Levy

 

Deadline to Send an EPS

You need to send an EPS by the 19th of the succeeding tax month for HMRC to claim any reduction (for example statutory pay) on what you haven’t sent from your Full payment submission. Remember that the tax month starts on the 6th of every month. 

 

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What to do After Sending an EPS?

After sending an EPS you need to:

  • pay HMRC by the 22nd (if paying online)
  • pay by the 19th (if paying by post)
  • see what you’ve claimed and the amount you need to pay on your HMRC online account within 2 days (on/before 14th if you sent the EPS earlier than 11th)

 

What If you Don’t Pay any Employees in a Tax Month?

In such cases, you are not liable to send an FPS. Rather, you should submit an EPS following the tax month you didn’t pay any employees. HMRC guides on what to include in your EPS here. In case you don’t send an EPS, HMRC will most probably:

  • estimate how much owe
  • warn you by sending notice through PAYE Online
  • impose a penalty

If you will not be paying any employee for a considerable period, you can inform HMRC up to a year in advance. You can do this by putting dates in the Period of inactivity fields in your EPS.

 

Allow Us to Handle Everything!

So now that you know: what is Employer Payment Summary, when to send it, what’s the deadline and what to do after sending an EPS, and what if you don’t pay any employee in a tax month. If you are still confused or are unable to send EPS or FPS, you can contact our payroll accountants for help. Our professionals are ready to handle your accounting and payroll concerns at a competitive price.

 

 Whether you are a contractor, self-employed, or a limited company, be sure to get in touch with us today for a quote!

 

Disclaimer: This blog is intended to provide general information on Employer Payment Summary.

 

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