From paper form to payroll report
The P32 began as a paper form from HMRC's Accounts Office. HMRC's Statutory Payments Manual still defines it as the form used by the employer to record all their payments to HMRC for the tax year. Today it is a report: HMRC's Basic PAYE Tools calls it the Employer Payment Record and holds each pay run's deductions in it, so you know the amount due each month.
The rule it applies, in Basic PAYE Tools' words: each month you pay the full deductions reported on the previous tax month's Full Payment Submissions, minus reductions on Employer Payment Summaries sent before the 19th. Payment is due by the 22nd of the next tax month electronically, or must reach HMRC by the 19th by cheque. If you usually owe less than £1,500 a month, you may be able to pay quarterly.
A month on the P32
| Line | Amount |
|---|---|
| Income Tax (from the FPS) | £812.40 |
| Employee National Insurance | £301.20 |
| Employer National Insurance | £544.95 |
| Student loan deductions | £42.00 |
| Less SMP recovered on the EPS | −£230.00 |
| Due to HMRC by 22 October 2026 | £1,470.55 |
Because this employer's monthly bill is usually under £1,500, it could ask HMRC's payment helpline to pay quarterly instead. The next quarter's total would then be due on 22 January 2027.
Payslips add up to the P32
Add the tax, employee NI and student loan lines from every payslip paid in the tax month and you get the first, second and fourth lines of the P32. Employer NI and statutory pay recovery come from payroll, not the payslip. When the payslips and the P32 disagree, one of the pay runs has an error.
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Related terms
Questions
Does HMRC still send P32 forms?
The paper form came from the Accounts Office. Employers now keep the record in payroll software: HMRC's Basic PAYE Tools shows it as the Employer Payment Record, with the amount to pay in the last column.
When do I pay the amount on the P32?
By the 22nd of the next tax month if you pay electronically, or so a cheque reaches HMRC by the 19th. Quarterly payers pay by the 22nd after the quarter ends, for example 22 July for April to July.
Can I pay PAYE quarterly?
You may be able to if you usually owe HMRC less than £1,500 a month, according to HMRC's Basic PAYE Tools guide. Contact HMRC's payment helpline to arrange it.
Sources
- HMRC: Statutory Payments Manual SPM210900, payslip booklet and form P32 (read 8 October 2026)
- HMRC: How to use Basic PAYE Tools (read 8 October 2026)
- GOV.UK: Pay employers' PAYE (read 8 October 2026)
Figures are for the 2026/27 tax year unless the text says otherwise. This page explains a payroll term; it is general information, not tax or legal advice.