When running payroll in the UK, most employers focus on PAYE, National Insurance and making sure staff are paid on time.
As important as these are, the Employment Payment Summary (EPS) is often overlooked.
EPS is not required every month, but failing to submit an EPS when it is needed can quickly lead to cash flow issues and avoidable penalties.
Many businesses only become aware of the EPS after receiving an unexpected letter from HMRC asking for payment.
It is crucial you understand how EPS works and when it applies so you can avoid this situation arising.
What is the Employer Payment Summary (EPS)?
An EPS is an electronic report sent to HMRC as part of the Real Time Information (RTI) payroll system.
It works alongside the Full Payment Submission (FPS), which reports on employee pay, tax and National Insurance every time payroll is run.
The EPS is used to tell HMRC about adjustments that reduce the amount you owe. Without it, HMRC assumes the figures shown on the FPS are final and will expect payment in full.
If you are entitled to reductions or have special circumstances, an EPS can ensure HMRC’s records reflect this accurately.
When do you need to submit an EPS?
You only need to submit an EPS in specific situations, but it is essential when this applies to you.
These reasons can include:
- Reclaiming statutory payments such as Statutory Sick Pay, Statutory Maternity Pay, Statutory Adoption Pay or Statutory Paternity Pay
- Claiming Employment Allowance to reduce your employer National Insurance bill
- Reporting that no employees were paid during a tax month
- Offsetting Construction Industry Scheme (CIS) deductions against PAYE
- Correcting figures from an earlier payroll
If any of these apply and no EPS is submitted, HMRC will expect payments for amounts that you do not actually owe.
What are the EPS deadlines?
EPS submissions must reach HMRC by the 19th of the month following the relevant tax month.
For example, adjustments relating to April payroll must be reported by 19 May.
HMRC records the exact time and date submissions are received and even small delays can cause late filing penalties or interest.
Meeting this deadline is crucial so that your PAYE account remains accurate.
How do you submit an EPS?
EPS is submitted electronically using either HMRC’s Basic PAYE tools or payroll software.
Most businesses use payroll software, as it integrates directly with employee data and automates much of the process.
When submitting an EPS, you must confirm:
- The relevant tax year and tax month
- Statutory payment recovery amounts
- Employment allowance claims
- CIS deductions, where applicable
- Any adjustments to earlier periods
Once submitted, HMRC will provide you with confirmation and this should always be kept proving compliance if issues arise later.
How can we help manage your EPS requirements?
Despite being relatively straightforward, EPS errors are common.
Businesses can forget to submit an EPS when no employees are paid, use the wrong tax month, claim allowances without checking eligibility or fail to retain supporting evidence.
With the right support, businesses can help stay compliant and avoid costly EPS oversights.
Our team can monitor your payroll activity and assess when an EPS is required, so submissions can be made accurately and on time.
Managing your payroll and EPS together can help remove the risk of missed submissions and provide reassurance that your PAYE position is always correct.
For advice and support on managing your EPS, contact our team today.