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JBR80
Level 2

Claiming Employment Allowance mid financial year

In standard QB UK online payroll, if Employment Allowance is turned on partway through the financial year (lets say July), will the allowance be applied to previously paid Employers National Insurance?

 

 

Solved
Best answer May 04, 2020

Accepted Solutions
JasroV
QuickBooks Team

Claiming Employment Allowance mid financial year

Hi there, @JBR80.

 

You'll want to go to your Company Settings and account the Employment Allowance from there. Here's how.

 

In your QuickBooks Online (QBO) account:

  1. Go to the Gear icon
  2. Select Account and Settings 
  3. Click the Payroll section.
  4. Select Yes for Does your business qualify for Employment Allowance 
  5. Then inform us the amount you have already used this tax year from the £3,000 annual allowance. You can find this information either on an Employment Payment record (P32) or by signing into your HMRC dashboard.
  6. Then click Save to save the changes.

Furthermore, here's an article you can read for more details: Set up Employment Allowance in QuickBooks Online Payroll.

 

Additionally, I recommend checking our Reports and Accounting page for reference to learn some tips and tricks in managing your reports. 

 

Let me know if you have other concerns or questions. I'm just a post away. Take care!

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7 REPLIES 7
Mark_R
Moderator

Claiming Employment Allowance mid financial year

Hi there, @JBR80.

 

Let me provide some insights about claiming the Employment Allowance and help you from there.

 

The Employment Allowance won't apply to the previously paid Employer liabilities. This will only adjust your recent National Insurance Contributions (NIC) Employer liabilities accordingly. Please know that the liability adjustments start from the point of turning on the Employment Allowance setting.

 

You can view these adjustments on the P32 report. Here's how:

 

  1. In your QuickBooks Online, click Reports from the left menu.
  2. Search for P32 from the search field.
  3. Select the appropriate year you want to review. 

It will download a PDF file where you can see the Employment Allowance claim.

 

Just in case you want to make changes to Employment Allowance in 2020/21, feel free to read this article for more guidance: Changes to Employment Allowance in 2020/21.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

JBR80
Level 2

Claiming Employment Allowance mid financial year

Thanks for the details. So, at the end of year if I have paid Employers NI that could have been covered by Employment Allowance, how do I account for that in QB?

JasroV
QuickBooks Team

Claiming Employment Allowance mid financial year

Hi there, @JBR80.

 

You'll want to go to your Company Settings and account the Employment Allowance from there. Here's how.

 

In your QuickBooks Online (QBO) account:

  1. Go to the Gear icon
  2. Select Account and Settings 
  3. Click the Payroll section.
  4. Select Yes for Does your business qualify for Employment Allowance 
  5. Then inform us the amount you have already used this tax year from the £3,000 annual allowance. You can find this information either on an Employment Payment record (P32) or by signing into your HMRC dashboard.
  6. Then click Save to save the changes.

Furthermore, here's an article you can read for more details: Set up Employment Allowance in QuickBooks Online Payroll.

 

Additionally, I recommend checking our Reports and Accounting page for reference to learn some tips and tricks in managing your reports. 

 

Let me know if you have other concerns or questions. I'm just a post away. Take care!

allportrecycling
Level 2

Claiming Employment Allowance mid financial year

Good morning

 

I didn't realise until month 2 of the year that I needed to switch the Employer Allowance on (I assumed it carried on from previous year!) so does that mean that I will not be able to go back to use up the allowance for month 1? (I have not yet paid it !!)

thank you

Megan

John C
QuickBooks Team

Claiming Employment Allowance mid financial year

Hi Megan What payroll system are you using, standard or advanced?

KC1978
Level 1

Claiming Employment Allowance mid financial year

 how do i switch this on - o don't think we have claimed this for the last 3 years! Can this be backdated as I am on a payment plan too

AbegailS_
QuickBooks Team

Claiming Employment Allowance mid financial year

Thanks for joining the thread, KC1978. 

 

I'm here to help you claim your Employment Allowance.

 

To reclaim your previous Employment Allowance tax for the past years, I'd suggest contacting HMRC to further assist you.

 

You can also see our guide here for claiming this for the 20/21 tax year in the standard payroll.

 

Lastly, I'd recommend consulting with an accountant or a Tax-Professional so you'd be guided in managing your payroll.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

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