Definition
An Employer Payment Summary (EPS) is a Real Time Information report an employer sends HMRC to adjust what it owes under PAYE, rather than to report individual pay. It is used to claim Employment Allowance, reclaim statutory pay for parents, record CIS deductions suffered by a limited company, or tell HMRC that nobody was paid. An EPS is due by the 19th of the following tax month.
When an employer sends an EPS
- Claiming Employment Allowance, worth up to £10,500 of employer National Insurance and claimed each tax year.
- Reclaiming statutory maternity, paternity, adoption, shared parental, parental bereavement or neonatal care pay: normally 92%, or 109% with Small Employers’ Relief.
- Offsetting CIS deductions taken from a limited company’s income against its PAYE bill.
- Reporting a tax month with no payments, instead of sending a Full Payment Submission.
Example
A limited company subcontractor has £1,200 of CIS deductions taken in a tax month and owes £900 PAYE. Its EPS reports the year-to-date CIS deductions, HMRC sets them against the PAYE bill, and the £300 left over can be carried forward within the same tax year.
A missing EPS for a month with no payments can bring a penalty. SmartFiling’s guide explains how RTI submissions work, including the EPS.
Related questions
- How do I claim back CIS deductions? Sole traders use Self Assessment; limited companies use the EPS during the year and claim a refund for anything left after 5 April. See how to claim a CIS refund.
- What is RTI and when do I send an FPS? RTI is HMRC's payroll reporting system; the FPS goes on or before each payday, and the EPS by the 19th of the next tax month.
Related terms
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Real Time Information
Real Time Information (RTI) is the way employers report payroll to HMRC under PAYE.
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Full Payment Submission
A Full Payment Submission (FPS) is the Real Time Information report an employer sends HMRC on or before each payday.
Read definition -
Employment Allowance
Employment Allowance lets eligible employers cut their employer Class 1 National Insurance bill by up to £10,500 each tax year…
Read definition -
CIS deductions
CIS deductions are the amounts a contractor withholds from a subcontractor's labour payments under the Construction Industry Scheme and pays to HMRC.
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