A company I file monthly FPSs for has alerted me to the fact that they have received a letter from HMRC requesting payment of unpaid Employer’s NI. They do not have to pay Employer’s NI as they qualify for the Employer’s Allowance, and I think I ticked the box on Quickbooks for this. They paid HMRC according to the P32 reports which do not include Employer’s NI as payable. However, the Employer’s Allowance hasn’t been reflected in the FPSs so HMRC think they have short paid. Any idea what has caused this and how to rectify? Thanks in advance.
Hi crosstimmydave Thanks for reaching out to us here on the Community. In order for HMRC to be notified that you're claiming Employment Allowance you have to submit an EPS, have you at any point submitted an EPS and what payroll system are you using, advanced or standard?
PS - An EPS will have been submitted for the 2021/22 tax year but not for the current tax year. So, do I need to delete the April, May and June pay runs, file the EPS and then re-run these pay runs? If so, could you please advise on how to do all of this. Thanks again.
I appreciate your reply as well as the additional information, @crosstimmydave. I’ll chime in on this thread and ensure you’ll be able to claim your employment allowance.
To delete those pay runs, whether you’ll want to finalise it or first unlock it. However, I’d suggest consulting your tax adviser. This way, you’ll be able to verify if we can delete those pay runs and submit an EPS to the HMRC.
Once verified, here are the steps on how to unlock and delete the pay run. Hence, please know that when you delete the pay run, this can’t be undone and you won't be able to retrieve any related data.
To unlock the pay run, here’s how:
From there, you can now delete the pay run. I’ll show you how:
Here’s an article that can guide you further on this process: Unlock or delete a pay run in QuickBooks Online Advanced Payroll.
Once everything is settled, feel free to visit these great resources here that’ll help you finalise a pay run in QBO Payroll: Finalise a pay run.
If you have any further questions or concerns about claiming an employment allowance or any QuickBooks Payroll tasks, please know that you can always tag my name. I'm here to help you in any way I can. Stay safe always.
Thank you for your reply
There is no additional accountancy support
To clarify a couple of points: