Running payroll smoothly is essential for every UK employer, but it’s not just about paying staff on time. An Employer Payment Summary (EPS) is your way to keep HMRC in the loop about key changes, claims, or adjustments under the PAYE scheme, including the apprenticeship levy. Whether you’re reclaiming statutory payments, claiming the Employment Allowance, or updating figures to stay compliant with Real Time Information (RTI) rules, submitting your EPS correctly is crucial.

Understanding how the EPS works will save you from costly errors and HMRC penalties. This guide will walk you through the process step by step, making it easier to stay compliant, manage your payroll confidently, and meet all HMRC requirements without stress.

What Is an Employer Payment Summary (EPS)?

An Employer Payment Summary (EPS) is a report that UK employers send to HMRC as part of their PAYE (Pay As You Earn) responsibilities. Unlike the Full Payment Submission (FPS), which reports employee pay and deductions each time you pay staff, the EPS is used to share additional information or adjustments that affect what you owe HMRC.

You submit an EPS through your payroll software or HMRC’s online services. If this is your first time submitting an EPS, it’s a key part of the Real Time Information (RTI) system, which requires employers to report PAYE data and handle RTI submissions each time employees are paid.

When Do You Need to Submit an EPS?

You’ll need to submit an EPS if:

• You’re claiming the Employment Allowance, which includes employee allowance claims.
• You want to recover statutory payments (e.g. Statutory Maternity Pay, Statutory Sick Pay)
• You need to reduce your monthly or quarterly PAYE bill for CIS deductions suffered (if you’re a subcontractor)
• You have no employees paid in a tax month (so you’re reporting a “no payment” period to HMRC)
• You’re claiming NIC holiday relief or other relevant adjustments

Why Is an EPS Important?

Submitting an EPS is not optional if these adjustments apply to your business. It’s essential for:

1. Staying Compliant with HMRC

HMRC expects real-time, accurate reporting. The EPS ensures you provide the extra details needed to keep your PAYE records complete and up to date. Failure to submit it when required can result in penalties, interest, or incorrect tax calculations.

2. Claiming Allowances and Refunds

If you’re eligible for Employment Allowance or want to reclaim statutory payments as a limited company, the EPS is the official way to tell HMRC. Without submitting it correctly, you could miss out on allowances or repayments your business is entitled to receive.

3. Managing Cash Flow Accurately

By reporting adjustments through the EPS, you help ensure your PAYE liabilities reflect the true amount owed. This can improve your cash flow planning and reduce the risk of overpaying HMRC.

How to Submit an EPS: Step-by-Step Process

Submitting an Employer Payment Summary (EPS) is a straightforward process when you understand the steps involved, especially when you consider the due date for submission. Most employers use payroll software to send the EPS, but it can also be done directly through HMRC’s online services if needed, along with ensuring that your bank account details are correctly set up. Here are the steps you need to follow to efficiently submit an EPS

Step 1: Check If You Need to Submit an EPS

Before starting, confirm that your situation requires an EPS. You’ll need one if you’re:

• Claiming statutory payments or Employment Allowance
• Reporting no payments in a tax month
• Adjusting previous payroll figures
• Reclaiming CIS deductions suffered (for subcontractors)

Step 2: Gather the Required Information

Make sure your payroll data is complete and accurate. You’ll need:

• Employer PAYE reference number
• The tax year and month the EPS applies to
• Details of any statutory payments recovered
• Any additional adjustments (e.g. Employment Allowance claim)

Step 3: Use Payroll Software or HMRC Tools

Most payroll software includes a feature for EPS submissions. Choose the EPS option, enter the necessary data, and follow the submission prompts.

If you don’t use payroll software, you can log in to HMRC’s PAYE Online for employers and submit an EPS manually.

Step 4: Submit by the Deadline

To avoid penalties or missed claims, submit your EPS by the 19th of the following tax month. For example, if you’re reporting for April, the EPS submission deadline is 19 May.

Step 5: Keep a Submission Record

Once submitted, your payroll software or HMRC system will confirm receipt. Save this confirmation as part of your payroll records in case of future audits or disputes.

Step 6: Monitor HMRC Response

Check your HMRC account or dashboard to ensure that the EPS was processed correctly. Any mistakes can lead to incorrect PAYE calculations, so it’s important to review HMRC’s updates after submission.

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Conclusion

Understanding how the Employer Payment Summary (EPS) works and knowing exactly how to submit it to HMRC can save you time, stress, and money. By preparing your details carefully and following the right steps, you’ll avoid costly penalties, including those related to late EPS submission and parental pay, while keeping your payroll running smoothly. Submitting your EPS on time not only keeps your records accurate but also ensures your business stays fully compliant with UK tax rules.

If you’d like guidance or have questions about the process, we’re here to help with a free consultation. Taking the time to get your EPS submission right today is an investment in your business’s smooth operation and future success.

Frequently Asked Questions

What happens if I miss the EPS submission deadline?

Late EPS submissions can lead to penalties from HMRC. You may also lose the right to get back statutory pay payments for that tax month. Employers have to pay the full amount of PAYE liability for now. Any changes or credits will be added in later months.

Can I correct mistakes after submitting an EPS?

Yes, employers can send a corrected EPS to HMRC by using payroll software. The changes need to show the right year-to-date amount for the tax year that was affected. If you fix mistakes right away, it helps you stay in line with the rules and avoid extra penalties.

How can I confirm that my EPS has been received by HMRC?

Employers can check if a submission went through by using payroll software or their HMRC account. Look for Real Time Information (RTI) notices or confirmations. These usually show up within two days after you send a payroll submission.

Are penalties applied for incorrect or late EPS submissions?

HMRC gives out fines when EPS submissions are late, including late FPS submissions or incorrect submissions. The type of fine depends on what the mistake is or how late you send it, including any issues related to payment dates. These fines are usually linked to the PAYE liability for the tax month when the problem happened.

Do I need to submit an EPS if no adjustments are required?

No, employers do not have to send an EPS to HMRC for months when there are no adjustments unless you need to show a period of inactivity or say it is the final tax year submission. It is always good to check the operational data before doing anything.