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Community Contributor *

Migrating to QuickBooks - Tax code issue

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. 

Solved
Best answer 01-10-2019

Accepted Solutions
Community Contributor *

Re: Migrating to QuickBooks - Tax code issue

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.

14 REPLIES 14
QuickBooks Team

Re: Migrating to QuickBooks - Tax code issue

Hey Martin,

 

Are you using QuickBooks Online, or QuickBooks Desktop?

Thanks,

Community Contributor *

Re: Migrating to QuickBooks - Tax code issue

QuickBooks Online

QuickBooks Team

Re: Migrating to QuickBooks - Tax code issue

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.

 

Community Contributor *

Re: Migrating to QuickBooks - Tax code issue

It's QuickBooks Online Payroll. I'm a new user so this is only my second day trialing the product.

 

My tax code for Apr-Jun 2018 was 1009L

My tax code for Jul 2018-Present is 1215L

 

For Apr-Dec, my previous accountant will have filed returns and I've paid tax. For this month onwards, I'll be doing it myself.

QuickBooks Team

Re: Migrating to QuickBooks - Tax code issue

Hi MartinSykes,

 

Thank you for answering the questions of my colleagues.

 

The answer to your question above is Yes. QuickBooks needs to know the tax code to calculate the employee's tax, particularly the PAYE tax.

 

For additional reference, you can check the GOV.UK website and click on PAYE tax calculator. You'll see that the employee tax code is one of the needed factors in calculating the PAYE tax.

 

Feel free to visit us back here if you need anything else.

 

Community Contributor *

Re: Migrating to QuickBooks - Tax code issue

My problem is that there is only one tax code field. How do I tell QuickBooks that I had the code 1009L for the first 3 months of the year and 1215L for the rest of the year?

QuickBooks Team

Re: Migrating to QuickBooks - Tax code issue

Hi Martin,

 

If you change your tax code through the year once this has been updated into QuickBooks this will then show on any new submissions being made old submissions with the old code would not show.

 

Please let me know if this helps.

 

Thanks,

 

 

Community Contributor *

Re: Migrating to QuickBooks - Tax code issue

 

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

 

 

Community Contributor *

Re: Migrating to QuickBooks - Tax code issue

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.

QuickBooks Team

Re: Migrating to QuickBooks - Tax code issue

Fab!

 

if you have any other questions, or queries don't hesitate to post again :)

 

Thanks,

Experienced Member

Re: Migrating to QuickBooks - Tax code issue

Is there anyway of showing the tax code history for an employee please?

QuickBooks Team

Re: Migrating to QuickBooks - Tax code issue

Hey there, Andy_Aquila.

 

You can download the Annual Payroll Summary (P11) to view the employee's tax code history. Here's how:

  1. Click Reports.
  2. In the Find report by name field, enter Annual Payroll Summary (P11).
  3. Choose the date range, then click Download Report.

I've got you a screenshot as a reference.

 

Feel free to let us know if you have other questions. We'd be pleased to answer them. 

Experienced Member

Re: Migrating to QuickBooks - Tax code issue

Thanks for the suggestion.  Unfortunately when I click on REPORTS I don't get a "Find report by name" field and the standard search option brings up a range of reports none of which is a P11 nor does any of them appear to show the tax code history!

Experienced Member

Re: Migrating to QuickBooks - Tax code issue

Actually I have now found what I wanted through the employee centre instead and calling up the P11.  Thanks for your help.