Reviewing your QuickBooks payroll records and comparing them with HMRC's reports for discrepancies is the best way to verify this, Snehil-Bhati.
There are several reasons why your P32 liability for your paye doesn't match with HMRC liability:
Check for any payroll processing errors or missed entries. Checking the gross to net report, identify if any employees have a difference of that balance for the timeframe.
Ensure that any backdated payroll entries have been recorded correctly. Verify if there have been any changes to employee tax codes that may affect calculations. Consider timing differences in reporting periods between your records and HMRC. Check RTI submission messages and make sure all employees are listed in the FPS.
You can contact HMRC directly if any employees are missing.
If changes impact the previous tax year, submit an Earlier Year Update (EYU) through HMRC basic tools.
If you don't see an option to send your previous year's EYU via HMRC basic tools, I recommend reaching out to HMRC. This way, they can provide more information on how to submit it to them.
When you see this "There are unfinalised pay runs that may affect this report" warning message, this means you have an unfinished pay run.
For more information, see this article to run a P32 report in QuickBooks: P32 Report in QuickBooks Online Advanced Payroll.
You can send your Employer Payment Summary (EPS) in QuickBooks Online. This article will guide you on when to submit it: Submit Employer Payment Summary (EPS).
If you have any questions about this, you can always add to this forum. We're here to help.
