The P32 is the employer payment record: a month-by-month summary of what you owe HMRC for PAYE, worked out from your Full Payment Submissions minus any reductions you claim on an Employer Payment Summary. You pay that amount by the 22nd of the next tax month, or by the 19th if you pay by cheque through the post. Small employers paying less than £1,500 a month may be able to pay quarterly.
HMRC's own manual still describes the P32 as the form an employer uses to record all its payments to HMRC for the tax year. The paper version came from the Accounts Office; today you'll usually see the same record produced as a report by your payroll software. The dates and rules below are from GOV.UK, as of October 2026.
What a P32 shows each month
| Line on a typical employer payment record | Where it comes from |
|---|---|
| Employee Income Tax deducted | Your FPS for the tax month |
| Class 1 National Insurance, employee and employer | Your FPS for the tax month |
| Student Loan repayments | Your FPS for the tax month |
| Reductions such as statutory pay you can recover | The EPS you send by the 19th |
| Apprenticeship Levy, if it applies | Your EPS |
| Construction Industry Scheme deductions suffered | Your EPS, if you're a limited company subcontractor |
| Amount due to HMRC | FPS total minus the EPS reductions |
HMRC works out what you owe from the FPS figures for the tax month, minus the reductions on any EPS you sent before the 19th. Your P32 should agree with that figure. If it doesn't, the difference is usually an EPS that didn't get sent, or an FPS sent late.
When to pay
| How you pay | Deadline |
|---|---|
| Monthly, electronically | The 22nd of the next tax month |
| Quarterly, electronically | The 22nd after the end of the quarter, for example 22 July for the 6 April to 5 July quarter |
| Cheque through the post | Must reach HMRC by the 19th of the month |
If you usually pay less than £1,500 per month, GOV.UK says you may be able to pay quarterly instead of monthly, and you contact the payment helpline to find out. You still send an FPS on or before every payday, even if you pay HMRC quarterly.
The reference number trap
This is the part that causes misallocated payments. You pay using your 13-character accounts office reference number, without spaces, and you add 4 extra digits when you make an early or late payment, so HMRC knows which period it's for:
- The first 2 digits are the last 2 numbers of the tax year the payment is for. A payment for the 2024 to 2025 tax year starts with 25.
- The next 2 are the tax month: 01 for 6 April to 5 May through to 12 for 6 March to 5 April.
- For a quarterly payment, use the month the quarter ends on: 03, 06, 09 or 12.
- GOV.UK's examples: 2502 for 6 May to 5 June 2024, and 2503 for the 6 April to 5 July 2024 quarter.
An early payment is one made before the 6th of the tax month or quarter it's due, and a late payment is one made on or after the 5th of the tax month after it was due. Use the wrong reference and your payment can be delayed or used to pay a different tax bill; the employer helpline can move it.
If you paid nobody this month
You must tell HMRC if you haven't paid any employees for at least one tax month, using an EPS by the 19th of the following month, instead of an FPS. If you don't, HMRC sends a notice estimating what you owe and you may have to pay a penalty. A P32 showing nothing due isn't enough on its own; HMRC needs the EPS.
Paying by Direct Debit
- Set it up through your HMRC online account at least 4 working days before the payment due date.
- HMRC collects the amount in your FPS, usually shortly after the 22nd, or 4 working days after you file if you file after the 19th.
- HMRC tells you the date and amount at least 3 working days before collection; it shows on your statement as HMRC SDDS.
- If you pay quarterly, keep submitting monthly returns. HMRC collects every 3 months.
- You can't use Direct Debit for payments over £20 million, from an overseas bank account, or for PAYE penalties.
What the PAYE bill can include
Beyond tax and Class 1 National Insurance, the bill can include Class 1B and Class 1A National Insurance on termination awards and sporting testimonials, Student Loan repayments, Construction Industry Scheme deductions, and the Apprenticeship Levy if your annual pay bill, or that of connected employers, is more than £3 million, as of October 2026. Class 1A on benefits reported on a P11D is paid separately. Your share of employer's National Insurance is part of the monthly P32 total, and your employees' year-end figures go on their P60.
Checking a payment arrived
Your HMRC online account should update within 6 working days of payment. If you pay by post, you can include a letter asking for a receipt.
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The verdict
Treat the P32 as your monthly reconciliation, not as paperwork. Each tax month, check that the amount due equals FPS minus EPS, pay it by the 22nd with the right 4-digit suffix if you're early or late, and send an EPS in any month you paid nobody. Do those three things and PAYE penalties rarely appear.
Frequently asked questions
What is a P32?
It's the employer payment record of what you owe HMRC for PAYE each tax month, built from your Full Payment Submission minus any reductions on your Employer Payment Summary.
When do I pay my P32 amount to HMRC?
By the 22nd of the next tax month if you pay monthly electronically, the 22nd after the quarter if you pay quarterly, or so it reaches HMRC by the 19th if you pay by cheque.
Can I pay PAYE quarterly?
If you usually pay less than £1,500 per month, you may be able to pay quarterly. Contact the payment helpline to find out.
What reference do I use to pay PAYE?
Your 13-character accounts office reference number, without spaces, plus 4 extra digits for early or late payments showing the tax year and month or quarter.
What if I paid no employees in a month?
Send an Employer Payment Summary by the 19th of the following month instead of an FPS, or HMRC may estimate what you owe.
