What is a P32?
A P32 is an employer's monthly record of the PAYE tax, National Insurance and other deductions owed to HMRC, after any amounts the employer can recover.
What a P32 means
Each time you run payroll, your software works out income tax, employee and employer National Insurance and student loan deductions for every employee. The P32, or Employer Payment Record, adds these up for each tax month and shows the net amount you must pay HMRC.
It also deducts anything you are entitled to recover, such as statutory maternity, paternity or adoption pay, and the Employment Allowance if you claim it. Companies that have suffered CIS deductions as subcontractors can also set those against what they owe. Tax months run from the 6th of one month to the 5th of the next.
You do not send the P32 to HMRC. It is a working record, and its figures should agree with the Full Payment Submissions and Employer Payment Summaries you file under RTI.
Example
A café with four employees runs payroll for the tax month 6 May to 5 June 2026.
| Item | Amount |
|---|---|
| Income tax deducted from staff | £1,840 |
| Employee National Insurance | £920 |
| Employer National Insurance | £1,410 |
| Student loan deductions | £110 |
| Less Employment Allowance claimed | −£1,410 |
| Amount due to HMRC | £2,870 |
The £2,870 must reach HMRC by 22 June if paid electronically, or 19 June if paying by post. Once the £10,500 Employment Allowance has been used up later in the year, employer National Insurance appears in full on the P32 and the monthly payment rises.
Why it matters for your business
PAYE is collected monthly, and HMRC charges penalties for late payments depending on how many times you are late in a tax year, plus interest. Checking the P32 before you pay lets you catch errors, confirm that statutory pay recoveries have been claimed and make sure the payment uses your Accounts Office reference with the right tax month, so HMRC allocates it correctly.
Small employers whose average monthly PAYE bill is under £1,500 can ask to pay quarterly instead of monthly, which some find easier to manage.
P32 vs FPS and EPS
The Full Payment Submission reports each employee's pay and deductions on or before payday. The Employer Payment Summary reports recoveries and allowance claims, and is due by the 19th of the following month. The P32 is your own summary of what those submissions mean in cash terms. Cloudkeepers prepares the P32 with every payroll run so clients know exactly what to pay and when.
Common questions
No. The P32 is a record you keep, usually produced by your payroll software. HMRC receives the underlying information through your Full Payment Submissions and Employer Payment Summaries, and the P32 shows what those submissions mean for the payment you need to make.
By the 22nd of the month after the tax month ends if you pay electronically, or the 19th if you pay by cheque through the post. For the tax month ending 5 June, that means 22 June. If you pay quarterly, the deadlines are 22 July, 22 October, 22 January and 22 April.