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.
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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.
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.
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.
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?
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.
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
Hey there, Andy_Aquila.
You can download the Annual Payroll Summary (P11) to view the employee's tax code history. Here's how:
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.
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!