When managing payroll in the UK, understanding the difference between FPS (Full Payment Submission) and EPS (Employer Payment Summary) is essential for staying compliant with HMRC’s Real Time Information (RTI) requirements. These two reports serve different purposes but work together to ensure your PAYE submissions are accurate, timely, and aligned with HM Revenue and Customs (HRMC) regulations.

While the FPS reports employees’ pay, tax, and National Insurance on or before each payday, the EPS is used to declare adjustments, such as statutory payments, Employment Allowance claims, or months where no employees were paid. Failing to understand when and how to use these reports can lead to penalties or incorrect tax liabilities.

In this guide, we’ll break down the core differences between FPS and EPS, explain when to use each, and show you how payroll software can simplify the entire process.

What is a Full Payment Submission (FPS)?

A Full Payment Submission (FPS) is a report that UK employers must send to HMRC on or before every payday. It provides real-time updates on employees’ earnings, tax deductions, and National Insurance contributions, ensuring HMRC holds accurate payroll records.

Submitting an FPS helps:

• Ensure correct tax and NI contributions are collected
• Keep employee records updated
• Maintain PAYE compliance

What’s Included in an FPS:

The FPS includes crucial employee information, such as National Insurance number and tax code.

• Employee details: Full name, address, tax code, National Insurance number. Include new employee details, such as NI number in your FPS.
• Payment specifics:

• Gross pay
• Income tax deductions (PAYE)
• National Insurance contributions
• Statutory payments (e.g. maternity/paternity pay)
• Student loan repayments

Net wages are calculated after all taxes and deductions and are typically transferred directly to the employee’s bank account afterwards.

• Employment changes:
  • New starter details
  • Leaves of absence
  • Leaver information (when an employee leaves the company)

What is an Employer Payment Summary (EPS)?

An Employer Payment Summary (EPS) is a payroll report UK employers submit to HMRC to report adjustments or details not captured by the Full Payment Submission (FPS). You use an EPS to reclaim statutory payments (like statutory maternity pay or paternity pay), claim Employment Allowance, report Apprenticeship Levy, declare Construction Industry Scheme(CIS) deductions, or notify HMRC when no employees received pay in a tax month.

Submitting an EPS helps:

• Adjust your PAYE and National Insurance liability when reclaims or reductions apply
• Notify HMRC about nil payments in a tax month
• Ensure proper credit for CIS suffered by limited companies and Employment Allowance

What’s Included in an EPS:

The EPS includes essential employer and payroll adjustment information, ensuring HMRC receives all updates and claims not reported through the FPS.

• Statutory payment reclaims (maternity, paternity, parental pay, such as adoption, and bereavement pay)
• Employment Allowance claim (once each year)
• Apprenticeship Levy amounts
• CIS deductions suffered (for limited companies)
• Nil payment notification for months when no employees are paid

EPS submissions are required only when these circumstances arise and must be sent by the 19th of the following tax month to ensure HMRC credits are applied correctly.

What Is the Difference Between FPS vs EPS?

Understanding the distinctions between a Full Payment Submission (FPS) and an Employer Payment Summary (EPS) is crucial for keeping your payroll compliant and avoiding costly mistakes.

Submission Dates and Triggers

The Full Payment Submission (FPS) must be submitted on or before each payday for every pay period, regardless of whether payroll is run weekly, monthly, or on an irregular cycle. Sometimes, employees within the same business may be paid at different times during the month. This ensures real-time reporting of employee pay and deductions to HMRC. Every time an employee is paid no matter the frequency, a new FPS is required.

By contrast, the Employer Payment Summary (EPS) is typically submitted by the 19th of the following tax month and is only triggered when adjustments are necessary, such as statutory payment claims, nil-pay months, Employment Allowance, Apprenticeship Levy, or CIS deductions. If there is nothing to amend or report, an EPS is not required for that period. Some companies may review their PAYE liabilities on a quarterly basis, rather than monthly.

Filing Frequency

FPS is sent with every payroll, whether payroll is weekly, monthly, or follows an irregular cycle, making it essential with every employee payment. Whereas, EPS is not routine; instead, it is submitted only as needed, mainly for reporting adjustments or when there are no payments in a given period.(Some companies may review their PAYE liabilities on a quarterly basis instead of monthly)

Information Contained in Each Submission

An FPS provides HMRC with a complete breakdown of employee pay, deductions, National Insurance, taxes, statutory payments, as well as starter and leaver information. In contrast, an EPS is used to communicate only adjustments such as those for statutory pay, Employment Allowance, CIS claims, Apprenticeship Levy, or zero payments to HMRC.

Purpose of FPS and EPS Submissions

The main purpose of an FPS is to update HMRC with real-time payroll data so they can accurately calculate PAYE and NIC liabilities. The EPS serves a different role by notifying HMRC of adjustments and claims that cannot be included in the FPS, ensuring all payroll circumstances are properly reported.

Error Correction Process

If an FPS contains errors, they are usually corrected in the next FPS submission, or by using an Earlier Year Update (EYU) for previous tax years. For an EPS, any mistakes can be corrected by submitting a new or amended EPS for the current or previous tax year.

Example Scenarios for Submission

FPS is used for situations such as monthly payrolls, weekly wages, or any recurring employee payments. On the other hand, EPS comes into play for statutory payment claims, nil-pay months, claiming Employment Allowance, or reporting CIS deductions.

Below, we have provided a table view for the differences. Check it out.

This side-by-side comparison will ensure you submit the appropriate report every time and stay compliant with HMRC requirements.

What Happens if you Miss an FPS or EPS Deadline?

Missing FPS or EPS deadlines can make you get HMRC penalties. When your FPS is late, you may have to pay a fine. The size of the fine will depend on how big the business is and how often this happens. You must send in a corrected EPS as soon as you can if there is a mistake. This will fix any problems and can help you not face more issues.

HMRC uses eight codes for late FPS submissions. These codes include things like “Reasonable excuse” or “Correction to earlier submission.” These can show why your FPS was late and may help you not get penalties. It is important to be on time with your submissions so taxes be collected right and your payroll stays correct.

How can Direct Payroll Services Help With Your FPS and EPS Submissions?

Managing FPS and EPS submissions is stress-free with Direct Payroll Services. Here’s how we make payroll easy:

• Automated submissions: Never miss a deadline, FPS and EPS are managed and sent automatically.
• Real-time compliance: Tax codes and statutory pay calculations are always up to date with HMRC changes.
• Direct HMRC integration: Instant, accurate submissions for full peace of mind.
• Proactive problem-solving: Issues are spotted and resolved early, preventing costly mistakes.
• Expert support: Stay penalty-free with guidance on complex PAYE rules and adjustments.

Let Direct Payroll Services handle the details, keep your cash flow healthy, and ensure your payroll is always right so you can focus on growing your business. Get in touch today with us and experience effortless, penalty-free payroll

Ready to Get Payroll Right Every Time? Here’s Your Takeaway

Get these essentials right, and payroll compliance stays hassle-free, no missed deadlines, no costly errors, no worries. With Direct Payroll, you can automate every requirement, ensure accurate submissions, and keep HMRC happy without the stress while protecting your business’s cash flow. Let the experts handle the details so you can focus on your business and maintain smooth, predictable cash flow month after month. Take the guesswork out of payroll and make every payday perfect with Direct Payroll.

Frequently Asked Questions

Is it mandatory for all employers to submit both FPS and EPS?

Yes, you have to submit the FPS every time you run payroll under PAYE rules. For the EPS, you only need to submit it if you need to report something special. This can be things like asking for employment allowance or telling HMRC about statutory leave payments. Always follow HMRC rules for these submissions. If you do not, there could be penalties.

Are there specific software requirements for submitting FPS and EPS?

HMRC says that payroll software must work with FPS and EPS submissions. Some popular examples are Sage, BrightPay, Shape payroll or Xero. These payroll tools help you by doing tasks for you, so you get accurate data and follow RTI rules. This way, you also make fewer mistakes in payroll reporting.

How do FPS and EPS affect employee tax codes and payments?

FPS tells HMRC about what employees earn. This can change their tax codes. EPS is used to deal with official claims or when payroll needs fixing. If you send in the right submissions to HMRC, the right deductions will be made. This helps stop any tax mistakes that could change what people get paid.

When and how should I file a ‘Nil Payment’ EPS if no employees were paid this month?

Employers need to send a nil payment EPS using payroll software by the 19th of the next tax month. This lets HMRC know that there were no payments in that month. It also helps to update the PAYE payroll details as needed.

How long do I need to keep FPS and EPS records to stay compliant with HMRC rules?

Employers have to keep their FPS and EPS records for at least three years. This is needed to follow HMRC rules. Good record-keeping can help with checks and can stop you from getting fined because of missing papers.