Changes to the Employer Payment Summary now live

With effect from 13th October 2014, HMRC have been able to accept a tax month date in the Employer Payment Summary (EPS). You may have thought you had been sending a tax month anyway if your software asks you for it; sadly until now the software was not able to send the tax month to HMRC. This led us to realise this time last year that we could only send the EPS from 20th of the month and by 19th of the following tax month for it to be allocated to the correct tax month.

Now EPSs can be attributed to the current month or the prior. For example an EPS sent between 6th October – 19th October could be attributed to month 6 or to month 7. An EPS sent from 20th October to 19th November can be attributed to month 7 or month 8.

Additionally it is also now possible to set the ‘Period of inactivity’ for 12 months rather than just six, which will be helpful for schemes that normally only take PAYE income once a year but are not formally classified as annual schemes with HMRC.

The caveat here is that whilst HMRC can accept a tax month and longer inactivity spans now, your payroll software may not have a legislative update scheduled until April when these changes can be put in place.