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Level 1

Claiming Employment Allowance in QB Advanced Payroll



I have hunted the boards and can't find anything that seems to be similar to my situation.


Most of my clients previous to March 2022 were on standard payroll but I upgraded all my clients and have added two other since then to Advanced payroll. 

Even though I have told the system I want to claim the Employers allowance etc it doesn't seem to be communicating to HMRC that this is the case. It was never a problem in the standard payroll version but this seems to be the case for all clients and not just the ones migrated over.

Am I being a bit thick and missing something or is there an issue in QB?


Thanks in advance


QuickBooks Team

Claiming Employment Allowance in QB Advanced Payroll

Hi there, @RMerrill. Thanks for taking the time to reach out to the Community for support. I'd be delighted to assist you with this issue about employment allowance in QuickBooks Online Payroll. 


Once you have enabled the Employment Allowance, this will be calculated and generated automatically on the Employer Payment Summary (EPS). The EPS auto-generates each month, though depending on your settings you may need to submit this manually. 


Here’s how you can access HMRC settings


  1. Go to Payroll.
  2. Then go to Payroll Settings
  3. Select HMRC Settings


From there, enter the details needed in your: 


  • Tax office number
  • Tax office reference
  • Accounts office reference


When claiming the Employment Allowance you should select Yes. However, if you’re unsure if you can claim the employment allowance you should check this with the HMRC.


Here's an article you can refer to for more details about submitting Real Time Information (RTI) to the HMRC: HMRC Settings in QuickBooks Online Advanced Payroll.


In addition, I've got these helpful resources for payroll year end guide: 



If you have any other questions about managing your payroll in QBO, please feel free to leave a comment below. I'll get back here as soon as I can to help you again. Thanks for dropping by, wishing you a good one!

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