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MartinSykes
January 9, 2019
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Migrating to QuickBooks - Tax code issue

  • January 9, 2019
  • 1 reply
  • 0 views

I've been running my own limited company for 3 years and have decided to do the accounting myself now with QuickBooks. We're 9 months into the year so I've started by entering the employee pay details to date. However, about 6 months ago, my tax code was changed from 1009L to 1215L. 

 

My question is: Does QuickBooks need to know about this to calculate my payments correctly and if so, how do I tell it? I can see that by using 1215L for the whole year, QuickBooks is calculating roughly a £100 lower E'ee NI deduction this month than for previous months. 

Best answer by MartinSykes

 

I'm still struggling with this but I think the tax code was a red-herring. I think it's actually a problem with the NI calculations:

 

1. In Oct-Dec, the deductions were E'erNI £496.80, E'eeNI £432.00, Tax £517.40

2. For January, QB now calculates E'erNI £206.17, E'eeNI £179.28, Tax £517.40

 

Using HMRC's online calculator, total NIC should be 928.80 in January, the same as the previous months

 

 


OK, found the issue - I hadn't set the date appointed to Director on the employee record. Correcting that fixed the payroll. 

 

Sorry for the confusion but thanks for the replies.

1 reply

JamesC
JamesC
January 9, 2019

Hey Martin,

 

Are you using QuickBooks Online, or QuickBooks Desktop?

Thanks,

M
MartinSykesAuthor
January 9, 2019

QuickBooks Online

R
Rasa-LilaM
January 10, 2019

Welcome back to the Online Community, MartinSykes.


Thanks for letting us know that you’re using the online version. This gives me an idea on how to enter the tax code.

To provide the detailed instructions, I need some additional information. Are you using PaySuite or QuickBooks Online Payroll?


When is the effective date that you’ll be using the current tax code? Did you already process a tax payment or file returns?


I appreciate any details you can provide. Looking forward for your response. Thanks in advance.

 

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