HMRC's manuals describe the P32 as the employer's payment record for keeping totals of tax, National Insurance and similar deductions. The Accounts Office used to provide the form, and employers used it to record all their payments to HMRC for the tax year. Those totals then fed into the old end of year return, the P35. Real Time Information removed the need for the P35 and P14 end of year returns. The P32 survived as a working record. HMRC's Basic PAYE Tools call it the Employer Payment Record and say it works out how much you need to pay HMRC. The main facts are summarised in this table. ItemDetail Form codeP32 What it isEmployer payment record of PAYE, National Insurance and other deductions owed to HMRC WhoAny employer operating PAYE HowProduced by payroll software or Basic PAYE Tools; kept, not sent to HMRC Payment deadline22nd of the next tax month electronically, 19th by post; quarterly if average monthly payments are below £1,500 Late payment penalty1% to 4% depending on defaults in the year, plus 5% at six and 12 months Replaced byThe paper form is no longer needed for the P35, which RTI removed; the record now comes from FPS and EPS data

P32: the employer payment record for PAYE explained

Q: How does a P32 work out in practice?

Illustration only. Harbour Bakery Ltd runs a monthly payroll. For tax month 3 (6 June to 5 July) its FPS submissions show income tax of £2,400, employee National Insurance of £900, employer National Insurance of £1,300 and Student Loan deductions of £150, a total of £4,750. One employee received £1,000 of Statutory Maternity Pay, and the company reclaims 92%, which is £920, on an EPS sent before 19 July. The P32 shows £4,750 less £920, so £3,830 is payable. Paying online, the company must have the money with HMRC by 22 July, quoting the reference for that year and month.

The P32 is the employer payment record: a running monthly summary of the PAYE tax, National Insurance and other deductions an employer owes HMRC, less anything it can reclaim. It is a record you keep, not a return you send. HMRC once supplied it on paper; today payroll software and HMRC’s free Basic PAYE Tools produce it from your payroll submissions.

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What is a P32?

HMRC’s manuals describe the P32 as the employer’s payment record for keeping totals of tax, National Insurance and similar deductions. The Accounts Office used to provide the form, and employers used it to record all their payments to HMRC for the tax year. Those totals then fed into the old end of year return, the P35.

Real Time Information removed the need for the P35 and P14 end of year returns. The P32 survived as a working record. HMRC’s Basic PAYE Tools call it the Employer Payment Record and say it works out how much you need to pay HMRC.

The main facts are summarised in this table.

Item	Detail
Form code	P32
What it is	Employer payment record of PAYE, National Insurance and other deductions owed to HMRC
Who	Any employer operating PAYE
How	Produced by payroll software or Basic PAYE Tools; kept, not sent to HMRC
Payment deadline	22nd of the next tax month electronically, 19th by post; quarterly if average monthly payments are below £1,500
Late payment penalty	1% to 4% depending on defaults in the year, plus 5% at six and 12 months
Replaced by	The paper form is no longer needed for the P35, which RTI removed; the record now comes from FPS and EPS data

Who needs a P32?

Every employer running a PAYE scheme needs some way of knowing what to pay HMRC each month or quarter, and the P32 is that record. It is just as useful for a one person company paying a director’s salary as for a business with hundreds of staff. If your payroll is run by a bureau or accountant, ask for the P32 each period so that you can check the payment before it leaves your account. For the basics of setting up a scheme, see registering as an employer.

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What does the P32 show?

For each tax month, which runs from the 6th of one month to the 5th of the next, the P32 typically brings together:

income tax deducted from employees;
employee and employer Class 1 National Insurance;
Student Loan and Postgraduate Loan deductions, which HMRC’s student loans guidance says the employer enters in the box headed Student Loan Deductions;
statutory payments recovered, such as Statutory Maternity Pay;
Employment Allowance used against employer National Insurance;
for a limited company that is also a CIS subcontractor, CIS deductions suffered and set off;
the net amount payable to HMRC for the period.

The figures come from two submissions. gov.uk says the amount you pay is what you owe as reported on your Full Payment Submission (FPS) in the previous tax month, minus the reductions on any Employer Payment Summary (EPS) sent before the 19th of the current tax month. Our guide to the FPS and EPS explains both.

Where do the reductions come from?

Reductions reach the P32 through the EPS. Employers can usually reclaim 92% of statutory payments such as Statutory Maternity Pay, and more if they qualify for Small Employers’ Relief, which applies where the business paid £45,000 or less in Class 1 National Insurance in the relevant earlier tax year. Employment Allowance reduces employer Class 1 National Insurance by up to £10,500 a year, used each time you run payroll until it runs out or the year ends; see Employment Allowance explained.

A limited company that suffers CIS deductions as a subcontractor reduces the PAYE, National Insurance, Student Loan and CIS deductions it pays over by the CIS deductions taken from its income, and HMRC’s CIS guide says the calculation should be shown on the company’s EPS. Any excess is carried forward within the tax year.

The EPS must reach HMRC by the 19th. One received later is taken into account against the next period, so the P32 for the current month will not reflect it.

When must I pay the amount on the P32?

Monthly payers must pay by the 22nd of the next tax month if paying electronically, or make sure a cheque by post reaches HMRC by the 19th. An employer whose average monthly payments are expected to be below £1,500 may be able to pay quarterly instead. Quarters run 6 April to 5 July, 6 July to 5 October, 6 October to 5 January and 6 January to 5 April, with payment due by the 22nd after the quarter ends, for example 22 July for the first quarter. Our page on when to pay PAYE to HMRC has more detail, and gov.uk also covers Apprenticeship Levy, which applies to employers with an annual pay bill of more than £3 million.

What happens if I pay late?

gov.uk warns that you may have to pay interest and penalties if a payment is late. The first late payment in a tax year does not count as a default. After that, the penalty is a percentage of the amount paid late:

1 to 3 defaults in the tax year: 1%
4 to 6 defaults: 2%
7 to 9 defaults: 3%
10 or more defaults: 4%

A further 5% is charged on amounts still unpaid after six months, and another 5% after 12 months. Daily interest runs on unpaid amounts from the due date until payment. HMRC’s manual says amounts under £100 paid late are excluded from the automated penalty. Our page on PAYE late filing and payment penalties covers the filing side too.

How long must I keep the P32?

gov.uk says employers must keep payroll records, including payments made to HMRC and reports sent to HMRC, for three years from the end of the tax year they relate to. If records are incomplete, HMRC may estimate what you owe and charge a penalty of up to £3,000. A P32 that ties back to bank payments is also the starting point when reconciling your PAYE account with HMRC. HMRC can open a compliance check on an employer’s PAYE, and the accountant’s fees for dealing with one can be insured through tax investigation insurance.

How does a P32 work out in practice?

Illustration only. Harbour Bakery Ltd runs a monthly payroll. For tax month 3 (6 June to 5 July) its FPS submissions show income tax of £2,400, employee National Insurance of £900, employer National Insurance of £1,300 and Student Loan deductions of £150, a total of £4,750. One employee received £1,000 of Statutory Maternity Pay, and the company reclaims 92%, which is £920, on an EPS sent before 19 July. The P32 shows £4,750 less £920, so £3,830 is payable. Paying online, the company must have the money with HMRC by 22 July, quoting the reference for that year and month.

Frequently asked questions

Do I send the P32 to HMRC?

No. It is your own record of what is due. HMRC works out your liability from the FPS and EPS you send, so the P32 should match those submissions.

What if I paid no employees this month?

Basic PAYE Tools guidance says you must send an EPS instead of an FPS for a tax month in which no one was paid. Otherwise HMRC may send a demand for a specified charge.

Why does my P32 differ from HMRC’s figure?

The usual causes are an EPS that reached HMRC after the 19th, so it counts against the next period, or a late or corrected FPS. Check both submissions before paying.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 6 November 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.