Hi I have a payroll client who pays their paye by bank transfer or billpay - I'm not sure which. This last month though she is owed PAYE back from HMRC - I have no idea how this works and how to get a refund?
they wouldnt normally claim it back and it would be deducted from the annual amount so in month 12 you would pay a reduced amount to bring this back to the correct balance due.
If it is a large amount and the company is small they may be able to request it back earlier.
You also need to complete the EPS to say no payment is due for the month
Thanks Sharon, that's brilliant. One more question what on earth is an EPS? and how do I do that? does my software not do that for me? as it does all the RTI stuff, I use 12pay.
Thanks
rachek
-- Edited by rachel_mclean on Friday 11th of July 2014 09:10:06 PM
its basically a report that goes tom HMRC telling them if you are reducing your payment that month or subsequent months- for things like SMP, CIS or if there is no payment due. I use Sage and you click on the EPS then tick the appropriate boxes- not sure about 12pay though sorry
The instruction isn't clear in the Help file but I believe that first you need to advance the pay month forward as usual (do a backup first as normal). Normally it asks you to submit the FPS. I am not sure if it will this time as it nil. It may automatically ask you submit an EPS.
Sorry that bit is a bit vague but I have never had to do it myself for a nil pay run.
I have made an EPS though, and that is quite simple
To make an EPS in 12Pay select the employer on the left list
At the bottom is a "Reports" button drop down list. Select RTI, then select the "Employer Payment Summary (EPS)" option
Make sure you select the correct month/ year. If it is the last month, which is 3, it should default to that if you have advanced the month.
Submit the EPS just like the FPS. In this case, there is no need to make any entries.
It must be submitted before the 19th July, if it was for payroll up to 5th July
Thanks Bill I've just done it but accidently did it for month 1....I'm making a right mess I have no idea how to change this now - as I've already pressed submit ahhhhh
Is this something I should be doing at the end of every pay month? the EPS submission?? I had no idea I had to do this
You only need to send an EPS, if there are no payments made to employees, and therefore no tax or NI payments. It stops HMRC from assuming there is a late filing, and sending out fines and estimates.
There are other times that an EPS is sent but it usually when you need to adjust the amount of money owed to HMRC, for example if an employee was paid SMP, and you are adjusting the amount due to HMRC.
Normally with 12Pay every time you advance the pay period (month?) it asks you to send an FPS, which is the important one. If there are no payments, or an adjustment is needed, you manauly have to send an EPS. Like I said above though, this is mandatory if there is nothing being paid, as HMRC will class it as late filing.
I am not sure of the effect of submitting an earlier EPS on any tax calculation but you can see what HMRC are expecting in the way of payments for each month, if you log in to the PAYE part of their site. It may help work out what may have happened.
Also I would still send an EPS for the current period, otherwise HMRC will still think there is a late filing.
