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useraccounting2
Level 1

EPS submission to HMRC

Hi All,

 

I just need some guidance from experienced accountants as I am new to QuickBooks.

I have one employee set up and he's the company director. I am not sure if all details are correct, especially the tax information so would appreciate some help here. To date he's not been paid any salary (company exists since Oct 2019), as he is employed somewhere else and receives salary there. I have never run any payroll for him to date and not planning to do until next year probably as the company does not bring any income. I bought Quickbooks in August but according to HMRC missed the deadline to submit EPS for the period 5 (6.08-05.09.2020). EPS has been submitted at the end of August. HMRC sent me the reminder about outstanding submission after it has been susbmitted which I found strange. Also, they have sent a bill for 200£ based on the estimation for the period 5. How can I provide them with the correct information and avoid paying the bill? I called them and they said my software provider should help with the EPS submission for the period 5 but I cannot find the option of doing this in Quickbooks as currently nothing appears as due. Can you please support?

Thank you in advance.

2 REPLIES 2
MaryLurleenM
Moderator

EPS submission to HMRC

Hello there, useraccounting2,

 

The Employer Payment Submission can only be submitted between the 6th and 19th of the month.

 

An EPS filing might be required in the following situations:

  • If no payments to employees have been made within the current or past pay period (no payment period is indicated). In other words, no FPS filings have been submitted.
  • To claim reimbursement for statutory payments (not including sick pay)
  • To claim the Employment Allowance, if entitled.
  • To show CIS Suffered for a period of time

You can check the steps on these articles, depending on the payroll subscription you're using:

Let me know if you have other questions.

useraccounting2
Level 1

EPS submission to HMRC

Hi Moderator,

 

Thank you for your feedback. Let me summarize to make sure I understood.

QuickBookswill allow me to submit the next EPS between 6th Oct and 19th Oct, the new submission will appear as due, correct? And that EPS covers any tax period, so will also refer to the period 5 for which HMRC charged the company incorrectly. Before I submit EPS I need to ensure the employee details are correct but do I need to run a “fake” payroll for 0£? After HMRC receives the EPS submission, they will cancel the unjustified bill for 200£. Is there anything else I can do to make sure that bill gets cancelled?

 

With regards to employee details, I have some doubts. I have set details up in QuickBooks few times, every time changing something as I am not 100% sure how to do it.

The company’s only employee is the company director and as I stated earlier, he has never received any salary from the company till date. He’s not anticipating to receive salary until maybe next year or even later. He’s currently employed somewhere else too and receives salary from there.

Can you please clarify below tabs in the QuickBooks “Employee” section?

 

1. Employment details:

a) I set up tax rate as 1£ as the system did not allow me to put 0, is that ok?

b) I selected “Paid irregularly” but not sure what’s the implication of that

 

2. Tax Information:

a) NI Letter – I selected A-Standard rate but not sure what it means exactly

b) Director calculation method – selected “alternative” but not sure what it means

c) Tax calculation method – selected “Cumulative” but not sure if this is correct

d) Started declaration – selected C – Has another job or pension

 

3. Workplace pension – selected “Non assessed”, is that ok?

 

4. Pay schedule:

a) I have randomly put 31st January 2021 as the next pay day, although as I said, this will most probably not happen. What date shall I put in this field?

b) Pay History – I have populated fields based on the employee last payslip from his current job. In the “total tax” field, should I put only PAYE tax or combined PAYE tax and NIC?

 

 

Is there any field in QuickBooks which would allow me to type the Period of inactivity? How can I ensure it is clearly visible to HMRC that the employee has not received any salary from the beginning of the company and is not going to receive it any time soon?

 

I would appreciate if you can help.

 

Thank you.