The payroll cycle

Step 13: Send employer payment summary (EPS)

If there are any changes to the payment that HMRC are expecting, no employees were paid in the current month, or Apprenticeship Levy due has been greater than zero in the tax year, you need to send an Employer Payment Summary. For example, you are paying an employee SMP and have reduced your payment to HMRC by the SMP Recovered amount.

You must also send an EPS if you are claiming Employment Allowance to offset up to (Undefined variable: General.Employement Allowance inc year) per year off your employer’s NIC liability. Find information on Employment Allowance.

Employment Allowance allows an employer to offset up to (Undefined variable: General.Employement Allowance inc year) per year of their Employer’s NI against their liability to HMRC at the end of each month. Employment Allowance is per business and not for every separate PAYE reference. It can be split across more than one Company.