After setting up payroll I am getting this message. We can't get tax code updates because you might not be registered for PAYE with HMRC. Why?

Hi @traceynixon,

I understand how frustrating this can be, but don’t worry—let’s get this sorted. That message usually pops up when QuickBooks Payroll is unable to connect with HMRC to fetch tax code updates. This can happen for a few reasons:

1. Your PAYE isn’t registered with HMRC – If you’ve just set up payroll, double-check that you’ve actually registered for PAYE with HMRC and received your PAYE reference number. If not, you’ll need to do that first.

2. Your HMRC credentials aren’t entered correctly in QuickBooks – Go to Payroll Settings > HMRC Settings and ensure your Government Gateway ID and password are correct. If there’s a typo or outdated info, QuickBooks won’t be able to communicate with HMRC.

3. Your Government Gateway account doesn’t have the right permissions – Log in to your HMRC online account and make sure you have the correct authority to access PAYE services. If needed, you can update your permissions or reauthorize QuickBooks.

4. There’s a temporary issue with HMRC’s system – Sometimes, HMRC services go down for maintenance. You can check their service status here.

If you've checked all of the above and are still having trouble, try disconnecting and reconnecting HMRC in QuickBooks:

• Go to Payroll Settings > HMRC Settings

• Remove your credentials and save changes

• Re-enter your credentials and save again

Give that a shot, and let me know if you’re still stuck! Happy to help further.

OliverNoah725 is making a good point, Traceynixon. Reviewing your payroll setup and ensuring that your PAYE with HMRC is registered helps us determine why you're getting the prompt message. Let's work on this together.

This error typically occurs due to incorrect or missing HMRC credentials in the Pay run Settings. If you're utilizing QuickBooks Online (QBO) Core Payroll, you can follow these steps to review the setup:

1. Log into your account. 
2. Go to the Gear icon, then select Payroll settings.
3. Click the pencil icon next to UK tax.
4. Check the following details:
   • Employer PAYE reference
   • Accounts office reference
   • Unique Taxpayer reference
5. Select Yes, I qualify if you will be claiming Employment Allowance. If you're uncertain whether you qualify for the employment allowance, it's best to consult HMRC.
6. Click Yes, I qualify if you are eligible for Small Employers' Relief. If you're a new employer or unsure about your eligibility for Small Employer's Relief, it is advisable to consult HMRC.

Moreover, if you're using QBO Advanced Payroll to configure your HMRC, refer to this article for setup guidance: Manage your HMRC settings in QuickBooks Core Payroll and Advanced Payroll.

However, I recommend reaching out to our QBO live support team if there's nothing wrong with the setup. They can check why this error is showing with the use of their secured tools and resolve this matter promptly.

Here's how to contact them:

1. Log into your QBO account.
2. Go to the Help (?) icon, then click the Search tab.
3. Type in a brief discussion of your concern, then click Enter on your keyboard.
4. Click the Contact Us tab below.
5. Select either:
   • Chat if you prefer messaging.
   • Call back if you prefer for us to call you.

Furthermore, the hours of operation for support services differ based on your QuickBooks package. You can check it out through this link.

Additionally, QBO Core Payroll can automate daily payroll processes, helping you save time and making payday one less concern. To configure this, read this comprehensive guideline: Set up and manage Auto Payroll in QuickBooks Online Core Payroll.

Providing top-notch support is our mission, and we encourage you to share any QBO inquiries. We prioritize your satisfaction by supporting you from start to finish.