Hi Kevin,

Thank you for using Community hub.

As an overview:

The  The P32 Employer Payment Record shows all values which are processed in the payroll program (which CIS isn't).

The FPS submitted at the end of your pay run reports all the money HMRC want from yourself as an employer for that particular run.

For example: Employee PAYE, Employee and Employers NIC, Student loans etc.

The EPS (submitted monthly or quarterly) informs HMRC of values which reduce your liability to them.

For example: Statutory payments you have made to employees like Maternity or Adoption pay.

Because payroll has no way of knowing your CIS deductions suffered, you need to manually enter this into the EPS at the time of submission.

Once submitted,  your HMRC liability for the period is finalised in HMRC's records.

In case you haven't seen this particular guide, I have a link to our guide below.

Employer payment summary (EPS) submissions and P32 payments

I hope this has clarified things for you.

Kind regards,

Nigel

Sage UKI

Hello Nigel,

Thanks for your reply,

The key sentence in there, for me, is "Once submitted, your HMRC liability for the period is finalised in HMRC's records."

So, the p32 figure is not always the actual amount i should send to HMRC. (due to any offsetting of CIS etc)

Before sending payment to HMRC i should be checking my government gateway to see what final figure HMRC want off me, instead of simply sending them the flat amount on the p32. (Hopefully HMRC will have offset the bill for me on their system and display an updated liability amount to be paid before 22nd).

thanks for your help Nigel.

Cheers

Kev

Hi Kevin,

If you have been sending HMRC the full P32 amount without taking into account the CIS yourself, you will be in credit with them once you submit an EPS with the CIS deductions suffered entered.

Just reduce the next payment you send them to get back on track.

Bear in mind going forward the CIS deduction value is a To-Date value, not a Per-Period value. Just keep adding to the value each time you send an EPS. If there is no CIS deduction suffered, leave the existing value as it is.

Kind regards,

Nigel

Sage UKI

Once again, Thanks Nigel,

If the p32 has an amount of liability on it and, by offsetting CIS, i end up not sending any amount to HMRC that month, What is the correct thing to submit on the next EPS under the headings "payment date" and "record amount paid to HMRC"?

Thanks

Kev

Hi Kevin,

Those fields aren't submitted to HMRC. 

if you have accounts linked to your payroll the amount and the payment date are posted to your accounts ledger.    

Integrate Payroll with Accounting

If you aren't posting to accounts, leave the amount as it is and use whatever the date is you are submitting the EPS.

Kind regards,

Nigel

Sage UKI 

Great stuff,

Thanks for all your info and help Nigel

Cheers

Kev