CIS and the EPS submisison
Article ID
11020
Article Name
CIS and the EPS submisison
Created Date
6th April 2018
Product
Earnie, IRIS Payroll Professional
Problem
CIS Deductions SUFFERED appear on the EPS because you are allowed to reduce your monthly tax payment to HMRC by the value of any tax deduction that was automatically made from YOUR invoices by a contractor.
Resolution
The EPS doesn’t report to HMRC deductions MADE from subcontractors
The EPS only covers reasons why an employer has reduced their payment to HMRC not why they may have to increase it.
This should work OK because neither submission actually states how much you are going to pay or have paid to HMRC. HMRC will reconcile what you pay against FPS, EPS and CIS submissions
FPS = Tax, NI, Student Loan liability for employees
EPS = Reductions for Statutory payments etc. including CIS Deductions suffered
CIS = Deductions made from subcontractors
The result of the three submissions should match the amount you pay to HMRC.
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