FPS vs EPS
Dec 21, 2024
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The FPS (Full Payment Submission) and EPS (Employer Payment Summary) are two types of payroll submissions that employers send to HMRC under the Real-Time Information (RTI) system. Here’s how they differ and when to use them:
1. Full Payment Submission (FPS):
The FPS is the primary submission employers send to HMRC every time they run payroll.
Purpose:
Reports details of payments made to employees (e.g., salaries, bonuses) and deductions (e.g., tax, National Insurance).
Must be sent on or before payday.
Key Information Included:
Employee details (e.g., name, National Insurance number, tax code).
Gross pay, tax deductions, and National Insurance contributions (NICs).
Student loan deductions and pension contributions (if applicable).
Start and leave dates for employees, if applicable.
When to Submit FPS:
Every time you pay employees.
If no payment is made during a pay period, an FPS is not required.
2. Employer Payment Summary (EPS):
The EPS is a supplementary submission used to inform HMRC about adjustments to the amounts due or to report no payments.
Purpose:
Used when there are no employee payments to report for a specific period (nil submission).
Adjusts what you owe HMRC by declaring recoverable amounts, such as:
Statutory Maternity, Paternity, or Sick Pay reclaim.
Employment Allowance.
CIS deductions if you're a contractor.
Lets HMRC know if you’re not paying employees for the entire tax month.
Key Information Included:
Adjustments to PAYE liability.
Declaration of no payments to employees in a specific period.
Recovery of statutory payments or CIS deductions.
When to Submit EPS:
If no employees are paid in a specific tax month.
To adjust PAYE liabilities for recoverable amounts.
Must be submitted by the 19th of the following tax month (e.g., for December, submit by January 19).
Example Scenario:
If you run payroll and pay employees, submit an FPS.
If you don’t pay any employees in a month, submit a nil EPS to avoid penalties.