P32 Processing

Based on information derived from the calculation of the payroll, the P32 Processing form provides the means to view, maintain and print P32 Employer Payment Record information. When you open the P32 Processing form the P32 records for the current tax year are displayed.

This is a summary of the amounts you have paid to HMRC each month. This includes all PAYE, student loan deductions and National Insurance contributions. Since RTI was introduced, the information in the P32 is sent through as part of your FPS and EPS.

The following commands are available on the Action menu:

Command	Description
Full/Concise	Determines whether all columns or only net total columns are included in grid.
Show/Hide Detail	If the P32 by Income Tax Month option is ticked on the Payroll - Utilities - Set Options form, the weekly breakdown will be hidden by default and you will see a month-by-month summary instead. If the option is not ticked, the weekly breakdown is displayed by default.
Funding	Under certain circumstances, HMRC provides funding for Statutory Maternity Pay, Ordinary Statutory Paternity Pay, Additional Statutory Paternity Pay, Statutory Sick Pay, Statutory Adoption Pay and Income Tax. This funding needs to be recorded for the P32 and the Employer Payment Summary. If you run payrolls in more than one company in the application, funding records can only be entered in the ‘parent’ company that is to be used to produce a P32. The grid lists all existing funding records in descending order of tax year (so you see the most recent record first). On the report, funding records are in descending order of tax year, but within each tax year the individual funding records are in ascending date order (as they appear on the P32 for a tax year).
Employment Allowance	Use this to enter and view the Employment Allowance claimed for the tax year. The Employment Allowance is currently claimed by employers to reduce their employers secondary Class 1 NICs bill by up to £4,000. From 6 April 2020, extra checks are needed to ascertain eligibility. Employers can claim the allowance if their secondary Class 1 NICs liability was less than £100,000 in the prior tax year. Employers whose secondary Class 1 NICs liability was £100,000 or more will not be eligible to claim the allowance. Because of the change, the Employment Allowance is considered to be a type of de minimis State aid because it advantages some businesses over others, which could potentially distort competition and trade within the European Union. This will not apply if the business does not engage in economic activity by putting goods or services on the market. Businesses must ensure that the £4,000 allowance when added to other de minimis State aid received or allocated in the claim year plus the previous two tax years does not exceed the de minimis State aid threshold for the trade sector. Employers need to reapply for the de minimis State aid Employment Allowance at the start of each tax year. HMRC will be responsible for ensuring compliance with the de minimis State aid rules. The allowance claimed is shown in the Emp. Allow. column on the Payroll - P32 Processing form and is deducted from the total amount shown to be paid to HMRC.
Apprenticeship Levy	The apprenticeship levy is calculated when the Payroll - P32 Processing form is opened after the pay bill is calculated as normal in the Payroll Calculation command. The levy is shown in the Appr. Levy column on the Payroll - P32 Processing form and is deducted from the total amount to be paid to HMRC.
Payment	This opens a new form that lists all payments for the tax year selected on the main P32 form. You can use this form to post a new payment. Default values are provided from the oldest unpaid period. A warning is displayed if you attempt to post payments against an already paid period, but you will not be prevented from doing so.
Drill Down	You can ‘drill down’ into group records that constitute the current selected grid line.
Previous Year	Use this to display values for the previous tax year if one is available.
Next Year	Use this to display values for the next tax year if one is available.
Consolidate P32	If you run payrolls in more than one company in the application, use this command to consolidate P32 transactions from linked companies.
Print P32	You use this command to print a copy of the P32 information based on criteria you define on the Payroll P32 Report form. The Full and Concise options under Columns determine whether all columns (Full) or only net total columns (Concise) are included in the report.
Edit	The information on the P32 Processing form is updated automatically by the application. You would not normally change the values on the form but there may be occasions when you need to do so, for example when you upgrade from another payroll system to the application. Use this Edit command to change the P32 period figures. Before selecting this command, highlight the period you want to edit. You cannot make any direct changes to the P32 totals; you can only change sub and grand-total values by making amendments to figures within specific periods. For more information, see the Edit P32 Help topic. The Edit form cannot be opened if the week numbers are hidden on the P32 Processing form. To enable the Edit command first select F5 to show the week numbers. If the P32 By Income Tax Month box on the Payroll - Utilities - Set Options form is ticked, the week numbers on the P32 Processing form are hidden by default.

Command

Description

Full/Concise

Determines whether all columns or only net total columns are included in grid.

Show/Hide Detail

If the P32 by Income Tax Month option is ticked on the Payroll - Utilities - Set Options form, the weekly breakdown will be hidden by default and you will see a month-by-month summary instead. If the option is not ticked, the weekly breakdown is displayed by default.

Funding

Under certain circumstances, HMRC provides funding for Statutory Maternity Pay, Ordinary Statutory Paternity Pay, Additional Statutory Paternity Pay, Statutory Sick Pay, Statutory Adoption Pay and Income Tax. This funding needs to be recorded for the P32 and the Employer Payment Summary.

If you run payrolls in more than one company in the application, funding records can only be entered in the ‘parent’ company that is to be used to produce a P32. The grid lists all existing funding records in descending order of tax year (so you see the most recent record first). On the report, funding records are in descending order of tax year, but within each tax year the individual funding records are in ascending date order (as they appear on the P32 for a tax year).

Employment Allowance

Use this to enter and view the Employment Allowance claimed for the tax year.

The Employment Allowance is currently claimed by employers to reduce their employers secondary Class 1 NICs bill by up to £4,000.

From 6 April 2020, extra checks are needed to ascertain eligibility. Employers can claim the allowance if their secondary Class 1 NICs liability was less than £100,000 in the prior tax year. Employers whose secondary Class 1 NICs liability was £100,000 or more will not be eligible to claim the allowance.

Because of the change, the Employment Allowance is considered to be a type of de minimis State aid because it advantages some businesses over others, which could potentially distort competition and trade within the European Union. This will not apply if the business does not engage in economic activity by putting goods or services on the market.

Businesses must ensure that the £4,000 allowance when added to other de minimis State aid received or allocated in the claim year plus the previous two tax years does not exceed the de minimis State aid threshold for the trade sector.

Employers need to reapply for the de minimis State aid Employment Allowance at the start of each tax year.

HMRC will be responsible for ensuring compliance with the de minimis State aid rules.

The allowance claimed is shown in the Emp. Allow. column on the Payroll - P32 Processing form and is deducted from the total amount shown to be paid to HMRC.

Apprenticeship Levy

The apprenticeship levy is calculated when the Payroll - P32 Processing form is opened after the pay bill is calculated as normal in the Payroll Calculation command.

The levy is shown in the Appr. Levy column on the Payroll - P32 Processing form and is deducted from the total amount to be paid to HMRC.

Payment

This opens a new form that lists all payments for the tax year selected on the main P32 form. You can use this form to post a new payment. Default values are provided from the oldest unpaid period. A warning is displayed if you attempt to post payments against an already paid period, but you will not be prevented from doing so.

Drill Down

You can ‘drill down’ into group records that constitute the current selected grid line.

Previous Year

Use this to display values for the previous tax year if one is available.

Next Year

Use this to display values for the next tax year if one is available.

Consolidate P32

If you run payrolls in more than one company in the application, use this command to consolidate P32 transactions from linked companies.

Print P32

You use this command to print a copy of the P32 information based on criteria you define on the Payroll P32 Report form. The Full and Concise options under Columns determine whether all columns (Full) or only net total columns (Concise) are included in the report.

Edit

The information on the P32 Processing form is updated automatically by the application. You would not normally change the values on the form but there may be occasions when you need to do so, for example when you upgrade from another payroll system to the application.

Use this Edit command to change the P32 period figures. Before selecting this command, highlight the period you want to edit. You cannot make any direct changes to the P32 totals; you can only change sub and grand-total values by making amendments to figures within specific periods. For more information, see the Edit P32 Help topic.

The Edit form cannot be opened if the week numbers are hidden on the P32 Processing form. To enable the Edit command first select F5 to show the week numbers. If the P32 By Income Tax Month box on the Payroll - Utilities - Set Options form is ticked, the week numbers on the P32 Processing form are hidden by default.

P32 by tax month

The P32 By Income Tax Month option on the Payroll - Utilities - Set Options form controls how some weeks in weekly, two-weekly and four-weekly payrolls are included on the P32 Processing form. The weeks affected span different tax months - weeks 5, 9, 18, 22, 27, 31, 35, 40, 44 and 48.

Important: Make sure this option is ticked if you run weekly, two-weekly or four-weekly payrolls so that the week numbers mentioned are included in the tax month expected by HMRC.

When the option is ticked:

The form includes the week numbers in the month where the usual pay date for the week falls. In the week numbers mentioned above, this means that the week may not be included in the month as it is displayed on the official P32 form. Example ...

The weekly breakdown will be hidden by default and you will see a month-by-month summary instead. You can view the details by selecting the F5 button or by clicking Show/Hide Detail on the Action menu.