Skip to main content
J
JBR80
May 4, 2020
Solved

Claiming Employment Allowance mid financial year

  • May 4, 2020
  • 1 reply
  • 0 views

In standard QB UK online payroll, if Employment Allowance is turned on partway through the financial year (lets say July), will the allowance be applied to previously paid Employers National Insurance?

 

 

Best answer by JasroV

Hi there, @JBR80.

 

You'll want to go to your Company Settings and account the Employment Allowance from there. Here's how.

 

In your QuickBooks Online (QBO) account:

  1. Go to the Gear icon
  2. Select Account and Settings 
  3. Click the Payroll section.
  4. Select Yes for Does your business qualify for Employment Allowance 
  5. Then inform us the amount you have already used this tax year from the £3,000 annual allowance. You can find this information either on an Employment Payment record (P32) or by signing into your HMRC dashboard.
  6. Then click Save to save the changes.

Furthermore, here's an article you can read for more details: Set up Employment Allowance in QuickBooks Online Payroll.

 

Additionally, I recommend checking our Reports and Accounting page for reference to learn some tips and tricks in managing your reports. 

 

Let me know if you have other concerns or questions. I'm just a post away. Take care!

1 reply

M
Mark_R
May 4, 2020

Hi there, @JBR80.

 

Let me provide some insights about claiming the Employment Allowance and help you from there.

 

The Employment Allowance won't apply to the previously paid Employer liabilities. This will only adjust your recent National Insurance Contributions (NIC) Employer liabilities accordingly. Please know that the liability adjustments start from the point of turning on the Employment Allowance setting.

 

You can view these adjustments on the P32 report. Here's how:

 

  1. In your QuickBooks Online, click Reports from the left menu.
  2. Search for P32 from the search field.
  3. Select the appropriate year you want to review. 

It will download a PDF file where you can see the Employment Allowance claim.

 

Just in case you want to make changes to Employment Allowance in 2020/21, feel free to read this article for more guidance: Changes to Employment Allowance in 2020/21.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

J
JBR80Author
May 4, 2020

Thanks for the details. So, at the end of year if I have paid Employers NI that could have been covered by Employment Allowance, how do I account for that in QB?

JasroV
JasroVAnswer
May 4, 2020

Hi there, @JBR80.

 

You'll want to go to your Company Settings and account the Employment Allowance from there. Here's how.

 

In your QuickBooks Online (QBO) account:

  1. Go to the Gear icon
  2. Select Account and Settings 
  3. Click the Payroll section.
  4. Select Yes for Does your business qualify for Employment Allowance 
  5. Then inform us the amount you have already used this tax year from the £3,000 annual allowance. You can find this information either on an Employment Payment record (P32) or by signing into your HMRC dashboard.
  6. Then click Save to save the changes.

Furthermore, here's an article you can read for more details: Set up Employment Allowance in QuickBooks Online Payroll.

 

Additionally, I recommend checking our Reports and Accounting page for reference to learn some tips and tricks in managing your reports. 

 

Let me know if you have other concerns or questions. I'm just a post away. Take care!

Terms & ConditionsAccessibility statement