HMRC have made changes to the RTI employer payment summaries (EPSs) to reduce the number of discrepancies between their records and employers records. HMRC has blamed most of the discrepancies on inaccurate reporting however it is more likely due to the delay in the updating of HMRC’s online records. EPSs can now be used to adjust the figures already sent by an FPS. Previously you couldn’t specify how the adjustment should be allocated and HMRC would apply the EPS to the latest FPS which caused mismatched records.

A new function called tax month indicator has also been added to EPS reports to allow you to show which month the EPS is relevant to. Payroll software providers are updating their software to include the new function. However you will not be able to use this until your payroll software provider has updated the software and given you the software updates for you to run.

If you have no PAYE or CIS activity and you don’t expect to make payments that need reporting to HMRC through RTI, you can send an EPS with the expected number of months you expect the situation to continue. This was previously limited to 6 months but this has now increased to 12 months. However when you have indicated a period of inactivity using an EPS and you then need to make a payment you will need to submit an FPS with the details of the payment and then resubmit the EPS to reinstate the period of inactivity if necessary.