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MichelleParfitt
July 14, 2020
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Im trying to claim employment allowance in Advance Payroll, I have the box ticked for Year 20/21 how do I let HMRC know?

  • July 14, 2020
  • 1 reply
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I have saved it but when I check HMRC they have not deducted the allowance from the Employers NI
Best answer by GeorgiaC

Hi Susan, 

 

Thanks for joining us on this thread - once you have enabled the Employment Allowance this will be calculated and generated automatically on the EPS. The EPS auto-generates each month, though depending on your settings you may need to submit this manually. 

 

Please check if you have this set to auto-submit on a specific day by going to the Payroll Settings > HMRC Settings > EPS Submissions. 

 

If you do not have EPS submissions enabled, you can submit this manually by going to the EPS report > Submit EPS. Please note the EPS is cumulative and can only be submitted between the 6th - 19th of each tax month. 

 

Please get back to us below if you're still experiencing issues submitting this to HMRC. 

 

1 reply

MaryLandT
MaryLandT
July 14, 2020

Hello there, MichelleParfitt,

 

Claiming the Employment Allowance is an automatic process once you turn on this feature in QuickBooks Online. The system will automatically adjust your NIC Employer liabilities accordingly. Just make sure to run your payroll as usual.

 

The adjustments align to the tax periods; 6th of the month to the 5th of the following month (6 April – 5 May), even if your pay periods differ to these dates.

 

To view the adjustment:

  1. Go to the  Employees or Payroll menu and click on Reports option.
  2. Click on the P32 report and open it.
  3. The Employment Allowance claim is shown in this report.

For HMRC to know that you are claiming the allowance, you are required to submit an Employer Payment Summary. This informs HMRC of the adjustment you have made to the NIC Employer liability. 

 

If you have multiple payrolls with different pay frequencies, these will be combined into one file. The EPS submission is due by the 19th of the month:

  1. Ensure you have run all weekly and monthly payrolls for the month.
  2. Go to the  Employees or Payroll menu and click Approved and Advance option.
  3. Click Make a different RTI Submission.
  4. The second line on the form shows the Employer Payment Summary (EPS).  Click Submit to the right of the table.
  5. Complete the form as necessary and click Submit EPS. 
  6. You still need to click Submit EPS even if you have nothing to enter into the provided fields.

You can refer to these articles for additional information:

Stay in touch if there's anything else you need. I'm always around to help.

 

Thank you and stay safe!

S
Susan Lionti
September 14, 2020

Quickbooks Advanced Payroll DOES NOT automatically claim Employment Allowance.

Previously with Paysuite everything ran smoothly. Employment Allowance was automatically claimed. I assumed this was also happening with Advanced Payroll because the P32 report in QB shows the employment allowance deducted. However I got  a letter from HMRC to say we had not paid our full contributions, when I checked our account at HMRC we had not claimed Employment Allowance. I went back to Paysuite and adjusted some settings and hoped that the next EPS would sort things out but it has not.

 

I am feeling very frustrated. What can I do to let HMRC know that we wish to claim employment allowance?

G
GeorgiaCAnswer
September 14, 2020

Hi Susan, 

 

Thanks for joining us on this thread - once you have enabled the Employment Allowance this will be calculated and generated automatically on the EPS. The EPS auto-generates each month, though depending on your settings you may need to submit this manually. 

 

Please check if you have this set to auto-submit on a specific day by going to the Payroll Settings > HMRC Settings > EPS Submissions. 

 

If you do not have EPS submissions enabled, you can submit this manually by going to the EPS report > Submit EPS. Please note the EPS is cumulative and can only be submitted between the 6th - 19th of each tax month. 

 

Please get back to us below if you're still experiencing issues submitting this to HMRC. 

 

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