If you do not pay any of your employees in a period tax month, that is the 6th of one month until the 5th of the following month, you need to notify HMRC to avoid them raising estimated charges against your PAYE account.
You can do this by creating a No Payment EPS, also known as a “period of inactivity” or a “no payment to any employees report”.
Create a No Payment EPS for one month
To do this in Shape Payroll navigate to HMRC -> RTI Submissions and then select ‘No Payment EPS’ from the ‘Create’ drop down menu in the top right of the list.
Select the date range you need to report for from the 2 select boxes and then click Save.
Shape Payroll will check you have not made any payments in this date range, and if you have it will prevent you from creating the No Payment EPS.
Your EPS is created, the system will then navigate to the EPS page where you can double check the details.
Create a No Payment EPS for several months
You may be inactive for a number of months - for example, you only pay seasonal employees. You can create a No Payment EPS for several months in one submission.
See HMRC guidance below if you temporarily stop paying employees.
The above No Payment EPS will tell HMRC that no employees will be paid during Month 2 to Month 7.
You can only create a No Payment EPS for the current tax year. If you need to create one for previous tax years, you will need to contact us to see if we can help.