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4614. EPR (Employer Payment Record). How are they calculated?

Introduction

What is due to HMRC each month has changed under RTI.

It used to be up to individual companies to declare what was due to HMRC based on their in house P32 reports month by month. At the end of the year you filed the P14 and P35 and then consolidated the figures and balanced what was actually due to HMRC. This has been abolished.

Now, what is due to HMRC each month is consolidated by HMRC based on the total FPS returns you have made for that month, together with what you have claimed via an EPS. The variable which HMRC uses to consolidate the amount due is known as the Employer Payment Record (EPR).

EPR Calculation Variables

  1. Payment Date Range: Any Payment Dates stated in the FPS returns which fall between the 6th of one month and the 5th of the following month will be used to calculate the EPR for that month. Our RTI FPS Consolidated Report does consolidate the figures based on this Payment Date range defined by HMRC.
  2. EPR is the total of PAYE TAX, NIC, and Student Loans minus CIS deductions suffered, SSP, SMP etc.
  3. SMP and SPP etc reclaims will be only 92% of what you have paid out to the employee, and not the full amount if you are not approved by HMRC for being eligible for Small Employers Relief. If you are an approved Small Employer your reclaims will be 103%. However, if you do not file the EPS for the reclaim, it will not be included in that month's EPR (P32 equivalent) amount due figure.
  4. Monthly Basis: RTI requires an employer to pay HMRC the amount due and clear any outstanding based on the RTI returns made in that month. There is longer an annual concept so we do not provide annual consolidated figures.
  5. Good News: Our system does consolidate your EPR based on the above variables automatically. The writing above is to provide answers to the many queries we have received lately.