What is an EPS - RTI FAQs
Article ID
11601
Article Name
What is an EPS - RTI FAQs
Created Date
1st July 2020
Product
IRIS Payroll Professional, Earnie
Problem
Resolution
The EPS is used to report the following to the HMRC:
• Recovery / Compensation amounts for statutory payment (SMP, OSPP, SAP, etc.)
• CIS deductions suffered.
• If no employees have been paid at all within the tax month (6th to 5th of the following month).
• If no employees are going to be paid in future months.
• If you have to pay the Apprenticeship Levy
If none of the above conditions apply you do not need to send an EPS.
If you do need to send an EPS, remember, this is sent on a monthly basis regardless if you pay weekly, 2 weekly, 4 weekly or monthly.
How to send an EPS
You need to make sure you have finished the last pay period that completes the tax month (6th to the 5th of the following month).
Go to “Online filing” > “Send Employer Payment Summary“
Work through the wizard and complete the values to send to the HMRC. These should be same as shown on the month end summary report.
Please Note: You should perform month end processing before sending an EPS.
When to send an EPS?
The EPS should be sent, if required, after you have finished the last pay period for the tax month.
Remember the tax month runs from the 6th to the 5th of the following month.
The HMRC expect to receive this by 19th of the following month.
Do I have to carry out Month-End Processing prior to submitting an EPS?
Yes, month-end processing calculates any reclaim, recovery or compensation values for the month. This is also required for Employment Allowance and Apprenticeship Levy figures to accumulate correctly.
How to correct a current month EPS
There is no restriction from the system / HMRC in resending an EPS, simply repeat the processes and correct the values before you resend. You can correct the values in line as part of the EPS submission process.
Send the EPS as normal, correcting the affected values, making sure the on the final confirmation screen the YTD totals are correct for the tax year so far.
How to correct a previous month EPS
The EPS reports to the HMRC the running YTD values for recovery/compensation. If you find a previous months submission was incorrect adjust your monthly values on your next submission to make sure the correct YTD values are shown on the final confirmation screen.
Employment Allowance and the EPS
If you are claiming Employment Allowance you will need to send at least one EPS to inform the HMRC to expect reduced payments
Make sure you have activated employment allowance before performing month end processing.
Send the EPS after finishing the last period of the tax month.
Note: The system may warn that you are sending zero values if there are no other recovery amounts to report, proceed with the submission to activate Employment Allowance with the HMRC.
From tax year 20/21 you will need to send an EPS in month 1 each tax year you wish to claim Employment Allowance.
Correcting an EPS for the previous tax year
Unlike the FPS, HMRC will still accept EPS submissions for the previous years.
Go to “Year-end“> “Use last year’s data” to load the previous tax year, or, to correect EPS values for an older tax year you would need to restore a backup in your payroll system from “File” | “Back-up & Restore” | “Restore Company Data“.
Send the EPS as normal, correcting the affected values, making sure the on the final confirmation screen the YTD totals are correct for the tax year.
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