The P32 Report details all payments owing and already paid to HMRC on a per month basis within a financial tax year.
This report can be accessed via the Payroll Settings > Reports > HMRC Reporting.
The report can filtered on a per financial year basis. Please note that if a user attempts to generate this report whilst a pay run is unfinalised, the following warning message will appear:
When the report is generated, you will note the appearance of 2 tabs. The first tab displays all the relevant data in summary format:
An explanation of each header is as follows:
- Tax Month: The tax month runs from the 6th of the month to the 5th of the next month. For eg, with April, this covers all pay runs with a pay date from April 6th to May 5th.
- PAYE: All PAYE, excluding student loan amounts, deducted from employee pays for the pay runs falling within the Tax Month.
- Student Loans: All student loan amounts deducted from employee pays for the pay runs falling within the Tax Month.
- Total PAYE: The sum of PAYE and Student Loans for the Tax Month.
- Employer NI: All employer national insurance contribution amounts calculated for the pay runs falling within the Tax Month.
- Employee NI: All employee national insurance contribution amounts deducted from employee pays for the pay runs falling within the Tax Month.
- NI Deductions: The total statutory payments relating to Maternity Pay, Paternity Pay, Adoption Pay and Shared Parental Pay processed in pay runs for the Tax Month. The second tab "NI Deductions Summary" details a breakdown of these payments.
- Emp Allowance: If the business is claiming an Employment Allowance, the amount will appear in this column. The allowance amount will be deducted (only from the Employer NI amount) up to a maximum £3000 for the tax year.
- Total NI: The sum of Employee NI + (Employer NI - NI Deductions - Emp Allowance).
- Total Due: The sum of Total PAYE and Total NI.
- Total Paid: Any payments made to HMRC can be recorded here. This is a manual entry and must be updated each time an amount is paid to HMRC. Instructions on how to do this are further below.
- Balance: The difference between Total Due and Total Paid. N.B. This amount is cumulative for the whole tax year.
The second tab breaks down the NI Deductions into each separate statutory component. Furthermore, the amounts are automatically classified within the Recovered and NIC compensation columns based on whether the business is eligible for small employers relief and has accordingly configured this in their HMRC settings, as follows:
If an employer is not eligible for small employers relief, 92% of the total NI Deduction amount is allocated to Recovered and £0 to NIC compensation.
If an employer is eligible for small employers relief, 100% of the total NI Deduction amount is allocated to Recovered and 3% is allocated to NIC compensation.
As stated above, HMRC payments can be recorded manually from this screen. To do this, click on "Record payments" and then click on the "Add payment" tab. The following popup box will appear:
Complete the following steps:
- Record the date the payment was made. This is important as it will determine what Tax Month the amount is recorded against;
- Enter the payment amount;
- Click on "Add HMRC payment".
You will then be redirected to the "Payments" that shows you a record of all payments made. To delete an entry, simply click on the red "x" icon to the left of the payment record:
Configuring Employment Allowance and/or Small Employers Relief
Both of these settings are switched off by default. If, however, the business is eligible for either go to Payroll Settings > HMRC Settings. From this screen you will see the following settings:
Click on the appropriate "Yes" radio button and then click on "Save".
This report can be exported to PDF and is also available via Report Packs.
If you have any questions or feedback, please let us know via firstname.lastname@example.org.