As an employer, you are required to file a Full Payment Submission (FPS) with HMRC for every payroll that is processed, which can be weekly, fortnightly, four-weekly, or monthly.
What is a Full Payment Submission (FPS)?
The full payment submission details to HMRC any employee information, such as name, tax codes, National Insurance numbers, and payroll identifier numbers. The submission will detail employees’ pay, tax, and NI, student loan payments to HMRC in any of the above pay periods. It will also detail any starters and leavers within the same period.
It is important that the FPS is completed no later than the pay date shown on the pay records.
If there are instances where an FPS is submitted after the pay date, you must report a reason to HMRC. The most common reason could be a correction to an earlier submission, so a reasonable excuse can be selected.
If you are a company that consistently files FPSs late, HMRC may consider issuing penalties.
What is an Employer Payment Summary (EPS)?
An EPS is required to be filed no later than the 19th of the following month after payroll has been submitted.
The submission will detail information not reported on an FPS, such as:
- Reclaiming statutory payments (like statutory maternity or paternity pay)
- Claiming the Employer Allowance, if you qualify. Normally completed at the start of the payroll year. However, if you qualify later in the year or if it has been missed, it can be claimed at any point.
- Reporting Apprenticeship Levy.
- If your company is CIS registered and suffers deductions, the deductions will be reported to HMRC via an EPS. Without an EPS being completed, you will not be able to reclaim your deductions, even if you have made the claim.
- If you employ staff but they don’t receive a salary for a pay period, you will report nil returns on an EPS and not an FPS.
Understanding the difference between the two types of submissions ensures you claim correctly any repayments due, but most importantly, ensures you remain compliant with HMRC.
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Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.