Key facts
- An EPS is submitted in addition to the FPS — not instead of it.
- The EPS deadline is the 19th of the month following the tax month.
- Use the EPS to claim the Employment Allowance (£10,500 for 2026/27).
- Report statutory payment recoveries (SMP, SPP, SAP, ShPP) on the EPS.
- Send an EPS for any nil-payment month to avoid a late-filing penalty.
What Is an EPS?
The Employer Payment Summary (EPS) is an RTI submission that reports items which reduce the amount of PAYE you owe HMRC, or which notify HMRC of months where no employees were paid. Unlike the FPS (which reports what you paid employees), the EPS reports adjustments to your PAYE liability.[1]
When Do You Need an EPS?
| Reason | What to Report |
|---|---|
| Employment Allowance | Claim the £10,500 allowance to reduce your employer NI |
| Statutory payment recovery | Amounts of SMP, SPP, SAP, ShPP, or SPBP you are reclaiming from HMRC |
| CIS deductions suffered | If your company has had CIS deductions taken from construction payments received |
| Nil-payment month | No employees were paid during a tax month |
| Apprenticeship Levy | If your annual pay bill exceeds £3 million |
| PAYE scheme ceased | Indicating the final month of your PAYE scheme |
Claiming Employment Allowance
The Employment Allowance allows eligible employers to reduce their employer NI bill by up to £10,500 per year (2026/27). You claim it through the EPS:[3]
- Include the Employment Allowance claim on your first EPS of the tax year
- Most payroll software has a checkbox or option for this
- The allowance is applied automatically against your monthly PAYE payment
- If you forget to claim at the start, you can claim later and backdate to month 1
Eligibility: From April 2025 the £100,000 previous-year liability restriction was removed, so employers of all sizes can claim. However, a company is not eligible if its only employee paid above the Class 1 Secondary Threshold is also a director — so a single-director company with no other staff paid above the threshold cannot claim.
Statutory Payment Recoveries
When you pay statutory payments (SMP, SPP, SAP, ShPP) to employees, you can recover most of the cost from HMRC:[4]
| Employer Size | Recovery Rate | Qualifying Criterion |
|---|---|---|
| Small employer | 109% (100% + 9% compensation, 2026/27) | Total Class 1 NI in the qualifying tax year was £45,000 or less |
| Larger employer | 92% | Total Class 1 NI exceeded £45,000 |
Recovery amounts are reported on the EPS and deducted from your monthly PAYE payment to HMRC. If the recovery exceeds your PAYE liability, HMRC will credit the balance or refund it.
Nil-Payment Months
If no employees are paid during a tax month, you must send an EPS to tell HMRC. Without it, HMRC assumes you have not reported and may:[2]
- Estimate your PAYE liability
- Send a payment demand
- Charge a late-filing penalty
Tip: If you know you will not pay anyone for several months (e.g. a seasonal business), you can submit a single EPS covering multiple months in advance. Set the “period of inactivity” dates to cover the expected nil-payment period.
EPS Deadlines
The EPS must be submitted by the 19th of the month following the end of the tax month:
| Tax Month | Period | EPS Deadline |
|---|---|---|
| Month 1 | 6 Apr – 5 May | 19 June |
| Month 2 | 6 May – 5 Jun | 19 July |
| Month 3 | 6 Jun – 5 Jul | 19 August |
| Month 6 | 6 Sep – 5 Oct | 19 November |
| Month 12 | 6 Mar – 5 Apr | 19 May |
Frequently Asked Questions
Do I always need to submit an EPS?
No. You only need an EPS when you have something to report that is not covered by the FPS. Common reasons include claiming the Employment Allowance, reporting statutory payment recoveries, declaring a nil-payment month, or reporting CIS deductions suffered. If you have none of these, you only need to submit the FPS.
When do I claim Employment Allowance on the EPS?
Claim the Employment Allowance on the first EPS you submit in the tax year (usually for month 1, April to May). The claim carries forward for the rest of the year. If you forget, you can claim at any point during the tax year and backdate it to the start.
What happens if I forget to send an EPS for a nil-payment month?
HMRC expects either an FPS or an EPS for every tax month. If neither is received, HMRC may assume you owe tax and send a late-filing penalty. Sending a nil-payment EPS by the 19th of the following month prevents this.
Can I recover statutory payment costs through the EPS?
Yes. If you are a small employer (total NI liability under £45,000 in the qualifying tax year), you can recover 109% of SMP, SPP, SAP, and ShPP (100% plus 9% compensation for 2026/27). Larger employers can recover 92%. The recovery amounts are reported on the EPS and offset against your monthly PAYE payment to HMRC.
Further Reading
- Full Payment Submission (FPS) — the core RTI submission for every payday
- Real Time Information (RTI) Overview — how the whole RTI system works
- Statutory Maternity Pay (SMP) — recovering SMP through the EPS
- The Employment Allowance — detailed eligibility and claim process
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Sources
- Sending an Employer Payment Summary — GOV.UK
- Running payroll — GOV.UK
- Employment Allowance — GOV.UK
- Recover statutory payments — GOV.UK