Navigating Payroll. Understanding P32 and How to Pay HMRC

Payroll management is a cornerstone of any business operation, ensuring that employees are accurately compensated and statutory obligations are met. Among these obligations is the submission of the P32 form and the payment of taxes to HM Revenue & Customs (HMRC). Understanding this process is vital for small business owners to maintain compliance and avoid penalties. 


What is P32? 

The P32 form is a record of the National Insurance contributions (NICs) and Income Tax deducted from your employees’ pay, as well as any employer NICs due. It also includes any statutory payments your business has made, such as Statutory Sick Pay (SSP) or Statutory Maternity Pay (SMP). Essentially, it summarizes the amounts owed to HMRC for a given tax period. 


How to Pay HMRC 

Once you’ve calculated the amounts owed to HMRC based on your P32, you must make the payment by the due date.  The deadline for submission and payment is usually the 22nd of the month following the payment period  

There are several methods for paying HMRC, including: 

  • Online Banking: You can use online banking to make a same-day or next-day Faster Payment, Bacs, or CHAPS transfer. Ensure you include the correct payment reference, typically your 13-character Accounts Office reference number. 
  • Direct Debit: Setting up a Direct Debit allows HMRC to automatically collect the amount due from your bank account on the due date. This can provide convenience and peace of mind, ensuring timely payments without the need for manual intervention. 
  • Debit or Corporate Credit Card: HMRC accepts payments via debit or corporate credit card online. However, note that there may be a surcharge for credit card payments. 
  • Cheque: While less common in the digital age, you can still pay HMRC by sending a cheque through the mail. Make sure to allow enough time for the payment to reach HMRC by the due date. 

Regardless of the payment method chosen, it’s crucial to ensure that you submit the payment by the deadline specified by HMRC to avoid late payment penalties. 


Why Choose Husky for Payroll Services 

While managing payroll and meeting HMRC obligations can be daunting, partnering with a reliable payroll service provider can streamline the process and mitigate risk. Husky offers comprehensive payroll services tailored to the needs of small businesses, including: 

  • Monthly processing of payroll changes, such as new joiners, leavers, commissions, expenses, and benefits. 
  • Generation of draft payroll and payslips for approval on an intuitive online portal. 
  • Finalization of payroll and submission to HMRC, ensuring compliance with regulations. 
  • Distribution of payslips via an app for easy access by employees. 
  • Preparation of essential reports, including P32, P45, and P60, to fulfil statutory requirements. 
  • Secure online storage of payroll reports and payslips for easy access and record-keeping. 
  • Access to an Employer Portal for managing all payroll-related communications and tasks. 
  • Integration of pension and payroll systems, including calculations for Salary Exchange and other benefits. 
  • Dedicated email and phone support for any payroll and pension queries, ensuring prompt resolution of issues. 

By leveraging Husky’s expertise and innovative solutions, small business owners can streamline their payroll processes, maintain compliance with HMRC requirements, and focus on driving business growth. Visit our website for more details and book a 10-minute call to explore how Husky can help your business thrive in 2024. 


Husky turns workplace pensions into the employer's super power

Husky is the sole independent workplace pension platform in the UK. Husky’s team has invested in technology that integrates your pension, payroll, salary exchange and compliance into one system to improve the financial well-being and save your business time and money.