Employer Payment Summary

This submission is used to reduce the charge calculated from the most recent FPS submission. It is also used to notify HMRC if no employees are paid in a pay period meaning Income Tax, NI, and other deductions such as student loans are not due. If this is your first EPS the year to date figures for any recovered payments for statutory payments, CIS Deductions and NICs Holiday in the current year are also included.

The year to-date recoverable amounts displayed on page two are derived from the Payroll - P32 Processing form. If you operate more than payroll company using the same Accounts Office reference, the EPS must be sent from the consolidation P32 company (defined in the P32 Co. Consolidation box on the Payroll - Utilities - Set Options form).

The EPS must be submitted before payment to HMRC is due on the 19th of the following tax month.

The Wizard

The Employer Payment Summary wizard is designed to enable the file for the submission to be quickly created before it is submitted to HMRC using Pegasus Online Filing Manager.

If you use more than one payroll group they are automatically selected because the EPS must include all information for the whole company. For this reason the wizard must be run from the same company that you generate your P32 values from.

First Page

The first page of the wizard includes initial choices for the submission, for example whether the EPS is a regular submission or the last one of the year.

Option	Description
Process	You can choose to only see a report without creating an EPS file or see a report and also create the file. You can choose the report destination from the Publisher form before the file is created. If you choose to create a file you will be asked to confirm this after you have started the wizard process.
EPS Details	There are three types of EPS: the 'Regular EPS' (for a normal tax month sent before payment to HMRC is due on the 19th of the following tax month) the 'Final EPS of the year'. Before sending the final EPS submission for the tax year you must make sure that all Full Payment Submissions for the tax year have been submitted. 'Scheme has ceased' (if you cease being an employer).
No Payments Due	Select if you have made no payments to employees or directors for an earlier period of one or more complete tax months, and so an FPS was not submitted. If no payments were made in a one or more complete tax months (so there was no FPS to submit) you must submit an EPS and indicate no payment is due and show dates in 'no payments due' fields. You must also select a date range for the relevant tax month using the From and To dates below.
Period of Inactivity	Select if you know that for one or more future tax months in the tax year you will not be paying any employees. The purpose of the EPS in this situation is to inform HMRC in advance that Employer Payment Summaries and Full Payment Submissions will not be submitted for the chosen period of time. In accordance with HMRC requirements, the first day of the period of inactivity must be the sixth day of the respective month - the first day in a tax month. You can enter a date range of up to 12 months.

Option

Description

Process

You can choose to only see a report without creating an EPS file or see a report and also create the file. You can choose the report destination from the Publisher form before the file is created.

If you choose to create a file you will be asked to confirm this after you have started the wizard process.

EPS Details

There are three types of EPS:

the 'Regular EPS' (for a normal tax month sent before payment to HMRC is due on the 19th of the following tax month)
the 'Final EPS of the year'. Before sending the final EPS submission for the tax year you must make sure that all Full Payment Submissions for the tax year have been submitted.
'Scheme has ceased' (if you cease being an employer).

No Payments Due

Select if you have made no payments to employees or directors for an earlier period of one or more complete tax months, and so an FPS was not submitted. If no payments were made in a one or more complete tax months (so there was no FPS to submit) you must submit an EPS and indicate no payment is due and show dates in 'no payments due' fields.

You must also select a date range for the relevant tax month using the From and To dates below.

Period of Inactivity

Select if you know that for one or more future tax months in the tax year you will not be paying any employees. The purpose of the EPS in this situation is to inform HMRC in advance that Employer Payment Summaries and Full Payment Submissions will not be submitted for the chosen period of time. In accordance with HMRC requirements, the first day of the period of inactivity must be the sixth day of the respective month - the first day in a tax month. You can enter a date range of up to 12 months.

Second Page

The second page is where you enter the recovered amounts for the tax month, bank account details, and indicate whether the Employment Allowance is being claimed or ceased (from 6 April 2014).

Option	Description
Up to Tax Month	Select the month that the Employer Payment Summary is being submitted for. This will default to the latest month in Payroll. If you pay HMRC quarterly rather than monthly (and the P32 Payment Frequency option on the Payroll - Utilities - Set Options form is set to 'Quarterly') then the quarter number is displayed in the list where appropriate.
Recovered amounts	Enter the recoverable amounts for Statutory Payments, National Insurance contributions (the figures that are displayed initially are taken from the updated figures on the Payroll - P32 Processing form but you can change them if required). You need to enter CIS Deductions Suffered if necessary - this amount is not derived from the P32 Processing form.
Allocate the EPS credit ... against tax month x	When this box is selected the recoverable amounts are allocated against the month in the Up to Tax Month box. When this box is cleared the tax month that the recoverable amounts are allocated to depends on the submission date. This flowchart illustrates the tax month that recoverable amounts are allocated against, depending on whether this option is used or when the EPS is submitted.
Bank Account Details	Enter bank details to which refunds will be sent by HMRC if relevant. This information need only be provided once but can also be included each time an EPS is submitted.
Employment Allowance
2024/25 tax year Employment Allowance: Employers can reduce their secondary Class 1 National Insurance Contributions (NICs) by up to £5,000. Eligibility: Employers with a secondary Class 1 NICs liability of £100,000 or more in the wprior tax year are not eligible to claim the allowance. 2025/26 tax year and onwards Employment Allowance Increase: From 1 April 2025, the Employment Allowance will increase to £10,500. Eligibility Change: From 1 April 2025, the £100,000 eligibility threshold will be removed, meaning employers whose secondary Class 1 NICs liability was £100,000 or more in the prior tax year will be eligible to claim the allowance. These changes are designed to provide more support to employers, especially larger ones, by increasing the allowance and removing the previous eligibility cap. De-minimis State aid rules Prior to the 2025/26 tax year, extra checks were required to ascertain a company’s eligibility for the Employment Allowance as it advantages some businesses over others, which potentially could distort competition and Trade within the European Union. For the 2025/26 tax year, HMRC are responsible for ensuring compliance with the de-minimis state rules and advise that the State aid rules don’t apply option within the Employer Payment Summary is not selected. From the 2026/27 tax year onwards, the State aid rules options have been removed from the Employer Payment Summary. You should record the employment allowance that you claim on the Payroll - P32 Processing - Employment Allowance form. It will then be deducted from the total amount shown to be paid to HMRC.
The Employer Payment Summary (EPS) is used to claim the Employment Allowance. One of these options on the EPS screen in Payroll must be selected: Can't claim Stop claiming Starting to claim or already claiming for the current tax year. Before 2026/27 tax year HMRC advise that the State aid rules don't apply option in the Employer Payment Summary should be selected. 2026/27 tax year onwards The State aid rules options have been removed from the Employer Payment Summary.
Select one of the following options for the Employment Allowance.
Can't claim	Select this option to signify to HMRC that the Employment Allowance can't be claimed by the company.
Stop claiming	Select this option to signify to HMRC that the company was claiming the allowance but it will no longer be claimed because the business is no longer eligible. Stopping your claim means that no allowance is due, and you must pay all Class 1 NICs as a result. Important: 1. Do not select ‘Stop claiming’ to indicate that you have claimed the full allowance for the tax year. 2. Do not select ‘Stop claiming’ to indicate that you are no longer employing anyone.
Starting to claim or already claiming	Select this option to indicate to HMRC that the Employment Allowance is being claimed for the current tax year. Even if an EPS to HMRC has never been sent to HMRC other than for the final tax month in a tax year, one must be sent to indicate the intention to claim the allowance. Otherwise, HMRC will assume the employer has underpaid their NICs.
State aid rules don't apply	Select if State aid rules don't apply to the business.

Option

Description

Up to Tax Month

Select the month that the Employer Payment Summary is being submitted for. This will default to the latest month in Payroll. If you pay HMRC quarterly rather than monthly (and the P32 Payment Frequency option on the Payroll - Utilities - Set Options form is set to 'Quarterly') then the quarter number is displayed in the list where appropriate.

Recovered amounts

Enter the recoverable amounts for Statutory Payments, National Insurance contributions (the figures that are displayed initially are taken from the updated figures on the Payroll - P32 Processing form but you can change them if required).

You need to enter CIS Deductions Suffered if necessary - this amount is not derived from the P32 Processing form.

Allocate the EPS credit ... against tax month x

When this box is selected the recoverable amounts are allocated against the month in the Up to Tax Month box. When this box is cleared the tax month that the recoverable amounts are allocated to depends on the submission date.

This flowchart illustrates the tax month that recoverable amounts are allocated against, depending on whether this option is used or when the EPS is submitted.

Bank Account Details

Enter bank details to which refunds will be sent by HMRC if relevant. This information need only be provided once but can also be included each time an EPS is submitted.

Employment Allowance

2024/25 tax year

Employment Allowance: Employers can reduce their secondary Class 1 National Insurance Contributions (NICs) by up to £5,000.

Eligibility: Employers with a secondary Class 1 NICs liability of £100,000 or more in the wprior tax year are not eligible to claim the allowance.

2025/26 tax year and onwards

Employment Allowance Increase: From 1 April 2025, the Employment Allowance will increase to £10,500.

Eligibility Change: From 1 April 2025, the £100,000 eligibility threshold will be removed, meaning employers whose secondary Class 1 NICs liability was £100,000 or more in the prior tax year will be eligible to claim the allowance.

These changes are designed to provide more support to employers, especially larger ones, by increasing the allowance and removing the previous eligibility cap.

De-minimis State aid rules

Prior to the 2025/26 tax year, extra checks were required to ascertain a company’s eligibility for the Employment Allowance as it advantages some businesses over others, which potentially could distort competition and Trade within the European Union.

For the 2025/26 tax year, HMRC are responsible for ensuring compliance with the de-minimis state rules and advise that the State aid rules don’t apply option within the Employer Payment Summary is not selected.

From the 2026/27 tax year onwards, the State aid rules options have been removed from the Employer Payment Summary.

You should record the employment allowance that you claim on the Payroll - P32 Processing - Employment Allowance form. It will then be deducted from the total amount shown to be paid to HMRC.

The Employer Payment Summary (EPS) is used to claim the Employment Allowance.

One of these options on the EPS screen in Payroll must be selected:

Can't claim
Stop claiming
Starting to claim or already claiming for the current tax year.

Before 2026/27 tax year

HMRC advise that the State aid rules don't apply option in the Employer Payment Summary should be selected.

2026/27 tax year onwards

The State aid rules options have been removed from the Employer Payment Summary.

Select one of the following options for the Employment Allowance.

Can't claim

Select this option to signify to HMRC that the Employment Allowance can't be claimed by the company.

Stop claiming

Select this option to signify to HMRC that the company was claiming the allowance but it will no longer be claimed because the business is no longer eligible. Stopping your claim means that no allowance is due, and you must pay all Class 1 NICs as a result.

Important:

1. Do not select ‘Stop claiming’ to indicate that you have claimed the full allowance for the tax year.
2. Do not select ‘Stop claiming’ to indicate that you are no longer employing anyone.

Starting to claim or already claiming

Select this option to indicate to HMRC that the Employment Allowance is being claimed for the current tax year.

Even if an EPS to HMRC has never been sent to HMRC other than for the final tax month in a tax year, one must be sent to indicate the intention to claim the allowance. Otherwise, HMRC will assume the employer has underpaid their NICs.

State aid rules don't apply

Select if State aid rules don't apply to the business.