Late RTI filing re SMP

Late RTI filing re SMP

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 I prepare payroll for client who does his own accounts. This is his story - what is true and what is fictional I have no idea!

One of his employees left in 2013/14 tax year - although it seems he was annoyed she was pregnant for the second time in a couple of years so I suspect he fired her or she assumed that she was dismissed. He lost a tribunal and had to pay £3381.20 SMP which he claimed from HMRC before actually paying employee.  He has now been told he must file "Form EPS"

Surely if this lump sum is submitted as a lump sum it will attract NI and tax? - Does it need to broken down week by week?

Don't think he will be client much longer!

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By dnicholson
07th Jul 2015 22:13

EPS
An EPS (a recovery EPS in this case) is an RTI filing to tell HMRC that the company has paid out SMP. The EPS just has a year to date total, so needs to be the total SMP recovered in that year. The recovery is likely to be 103% of the SMP, assuming the company isn't large (i.e. £45k+ total NI in the previous year).

The employee's FPS filed at the time should have included SMP, if it didn't an EYU will be needed to fix that.

The details will be handled by your payroll software. Tax and NI don't come into this part of it, the filing reduces the PAYE tax and NI paid by the company to HMRC.

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By hje
07th Jul 2015 23:22

Surely

he can't recover a payment he's already received in the form of advanced funding?

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By dnicholson
08th Jul 2015 00:28

Funding
But if he doesn't file the EPS, HMRC will want the funding back. So it's about keeping it rather than getting it.

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