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

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:

• Changes to Employment Allowance in 2020/21
• Employment Allowance.

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

Thank you and stay safe!

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?