CIS Deductions and P32

Question

Hello, 
 I have Sage Payroll and have noticed when doing an EPS it asks me to type in my CIS deductions suffered but on the P32 when submitted it doesn't mention the CIS deductions. How do i offset my CIS deductions from my liability for that month? 
 Do i just work it out myself and just send the appropriate amount to HMRC without telling them I have offset my CIS deductions suffered (i thought the EPS has told HMRC the amount i should be paying)? 
 
 Any answers would be gratefully received. I have searched and searched both sage helpand HMRC website and cannot find the concrete answer to this.

Nigel Thompson · Accepted Answer

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

Nigel Thompson · Answer

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

Sage Payroll UKI

CIS Deductions and P32

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