When the HMRC file is rejected and the above error message appears, it indicates that the total Statutory Maternity Pay (SMP) recovered for the company year-to-date is a negative figure. The EPS only accepts SMP recovered values of zero or higher.
This negative figure usually results from a data error or a correction being applied for SMP from a previous tax year that is now being processed in the current year.
To avoid this issue in future submissions, apply corrections for previous years using cancel payments and manual payments. This approach ensures that you submit the corrected data to HMRC under the relevant tax year, preventing it from affecting the current year’s EPS.
To override the SMP recovered figure, follow the steps below in portal.
📌Note: Once applied, the override remains active for each period until you remove it from the EPS Parameters. If the override should apply for only one period, make sure to remove it before generating your next EPS.
Click Manage Payroll then click Outputs.
Select RTI then click Generate File.
In the File Type list, select EPS.
From the Company drop-down menu, select the relevant company.
Click EPS PARAMETERS.
In the SMP Recovered field, enter the override value.
Click Save.