You can reduce your Employer Class 1 National Insurance by £4,000 for the tax year if you qualify for Employment Allowance. This allowance lowers your Employer Class 1 National Insurance each time you run payroll. You can claim it until the full £4,000 has been claimed or until the end of the tax year.
You need to inform HMRC that you qualify for Employment Allowance. If you set the Employment Allowance option in QuickBooks Online to indicate that you qualify, we flag this and prompt you to submit your status to HMRC as an EPS filing.
For each new tax year you need to inform HMRC of your status (that is, if you renew or can no longer claim the Employment Allowance) through the EPS, as and when this occurs.
HMRC calculates your tax liability based on whether you qualify or not.