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RTI – The Employer Payment Summary (EPS)
Monday, February 20th, 2012
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Two weeks ago, we concluded looking at the Full Payment Summary (FPS). This week, we look at the Employer Payment Summary (EPS). The FPS and EPS are likely to be the two most common RTI submissions that an employer is required to make.
At the time the employees are paid, or before, RTI requires the FPS to be sent, giving details of the payments that have been made together with the associated tax, NICs and Student Loan deductions taken. However, whilst the FPS allows the employer to report the value of tax, NICs, SSP, SMP, OSPP etc, it does not provide information to HMRC of the monthly or quarterly payments that are due to be made (by the 19th, or 22nd if paying electronically). Remember, employers can make recoveries in respect of the statutory payments that they have made, at a level dependent on the legislation in force at the time, the amount of SSP compared to the level of gross NICs and whether the company is regarded as a ‘small employer’.
The EPS, therefore, allows the employer to notify HMRC of the reductions it is allowed to make to the totals already submitted via the FPS. The EPS must be sent before the monthly or quarterly payment is due. HMRC will, then, expect the monthly or quarterly payment to be the sum of the payments due from the FPS less the reductions notified via the EPS.
The EPS can also be used to notify HMRC when there is no payment due to be made (a ‘NIL Return’), for example, when there were no employees or subcontractors in a pay period. It can also be used to alert HMRC that the remittance will not match the FPS total, for example, if there are amendments to be made from a previous tax year to be made with the next remittance.
HMRC are in the process of issuing guidance in the circumstance that EPS errors are made. The indication is that if there is a mistake, once spotted, the whole EPS can be resubmitted with the correction made and the correct year-to-date totals showing. Unlike correcting FPS errors, there is no requirement to show differences between the incorrect EPS and the correct EPS. A list of the data items required for the regular EPS is provided below. Note that all items have been flagged as mandatory; however, they will only be mandatory in the circumstances that they are applicable in the relevant month / quarter:
| Field Number | Employer Information | Comment | Mandatory? |
| 1 | HMRC Office Number | For example, if the Employer’s PAYE reference is 901/A111, the HMRC Office Number is 901 | Y |
| 2 | Employer PAYE Reference | For example, if the Employer’s PAYE reference is 901/A111, the Reference is A111 | Y |
| 3 | Accounts Office Reference | The reference is in the format 910RR00012345 | Y |
| 18A | Related Tax Year | Tax year to which the submission relates | Y |
|
110 |
ECON |
A reference allocated to the employer operating a Contracted-Out occupational pension scheme. |
Y, if applicable |
| Field Number | Payment Information |
Comment (mandatory if the fields apply in this pay period) |
Mandatory? |
| 87Ba | No payment due | Enter ‘Y’ if no payment or return is due for the CURRENT month – a ‘NIL return’. | Y |
| 91 | Value of SSP recovered YTD | Enter any recovery under the Percentage Threshold Scheme |
Once an amount is sent, it must be supplied for the rest of the tax year |
| 92 | Value of SMP recovered YTD | Enter value of SMP recovered |
as above |
| 93 | Value of OSPP recovered YTD | Enter value of OSPP recovered |
as above |
| 94 | Value of SAP recovered YTD | Enter value of SAP recovered |
as above |
| 95 | Value of ASPP recovered YTD | Enter value of ASPP recovered |
as above |
| 97 | Value of NIC compensation on SMP YTD | Enter value, if appropriate |
as above |
| 98 | Value of NIC compensation on OSPP YTD | Enter value, if appropriate |
as above |
| 99 | Value of NIC compensation on SSP YTD | Enter value, if appropriate |
as above |
| 100 | Value of NIC compensation on ASPP YTD | Enter value, if appropriate |
as above |
| 102 | Value of CIS deductions suffered YTD | For limited companies where CIS deductions have been made from payments received for work in the construction industry |
as above |
| 103 | Value of NICs holiday YTD | For employers registered for the Regional Employer NICs Holiday for New Businesses Scheme only |
as above |
|
136 |
Period of Inactivity from |
Enter the start date of complete FUTURE tax month period when there will be no paid employees, therefore, no FPS |
Y |
|
136a |
Period of Inactivity to | Enter the end date to the above period | Y |
|
137 |
No Payment Dates from | Enter the start date of complete EARLIER tax month period when there will be no paid employees, therefore, no FPS | Y |
|
137a |
No Payment Dates to |
Enter the end date to the above period. |
Y |
Further Information
- Payroll Help’s RTI Coverage
- Improving the Operation of Pay As You Earn (PAYE) – HMRC Impact Assessment
- Universal Credit – Welfare that Works
- Improving the Operation of Pay As You Earn (PAYE) – Collecting Real Time Information
- HMRC Press Statement 04 April 2011
- HMRC Statement 13 May 2011
- Summary of Responses 30 September 2011
- HMRC – Draft RTI Regulations (PAYE)
- HMRC – Draft RTI Regulations (NICs)
- HMRC – Draft RTI Regulations (CIS)
- HMRC – Draft PAYE Direction (Technical Note)
- NDS – HMRC Press Statement 23 November 2011
- HMRC - Employer Bulletin 39
- NDS – HMRC Press Statement 12 December 2011
- HMRC – Improving Your Payroll Data
- HMRC – Starters and Leavers Scenarios December 2011 (removed by HMRC 2012)
- HMRC – Technical Note ‘Proposal to Abolish the P45/P46 Forms’
- HMRC – Initial Guidance on RTI Items May 2011
- HMRC – Payroll Alignment January 2012
- HMRC – PAYE Update 10 – NINO Verification Response (NVREP)
Hugo Fair says:
February 20th, 2012
15:01
There is a typo in the above table … the value of ‘Field number’ 10 should be 100.
More importantly the table is incomplete (unless this is to be covered in a later article) – in that there are also:
* Fields 108 & 109 (where the EPS is the final one being submitted, forever or for this tax year (respectively);
* Field 110 (for the ECON, if applicable and if the EPS has a value in one of the previous two fields);
* Fields 111-117 (Declarations required if the EPS has a value in one of the first two fields).
Ian Holloway says:
February 24th, 2012
15:32
Hi Hugo,
Thanks for your comment – the additional fields that you mention will be covered in a later article when we talk about RTI and year-end / finishing the tax year.
KInd regards,
Ian
Ian Holloway
Avril says:
January 22nd, 2013
10:25
Can you tell me how to report deductions made from sub contractors? I can’t see a field for this.
Ian Holloway says:
January 22nd, 2013
13:06
Hi,
The basics of CIS reporting has not changed under RTI and this will carry on as now. The only thing that has changed is the reporting of CIS deductions that have been suffered.
I wonder if this link will help you on HMRC’s site – http://www.hmrc.gov.uk/rti/employerfaqs.htm
Kind regards,
Ian
David Walker says:
April 22nd, 2013
21:16
Can anyone tell me. Using the HMRC Basic toolkit with RTI, there appears to be no equivalent to the P32 to calculate the PAYE&NIC due to the HMRC that month (or quarter). Have asked the HMRC helpdesk who tell me you have to manually add this up for each employee. Can’t believe this is true. Can you help?
Thanks, David
Ian Holloway says:
April 29th, 2013
07:52
Hi,
I must admit that I am not familiar with BPT, never having used it previously. If it was there before, it does appear to be a deficiency that it is not there now or at least give an explanation of how to calculate your liability.
Manual calculation = potential for error in my eyes. Is there not a report that gives you gross tax and NICs, from which you can then deduct any recoveries and CIS Deductions Suffered?
Kind regards,
Ian