New Employment Allowance disclaimer in payroll

Question asked by Kevin Doran 9 years ago

Please note that the employment allowance is not directly deducted form the NIC's and HMRC. You could be overpaying tax to HMRC

This is good to see but I wouldn't be at all surprised if it leads to more confusion, accountants may well understand what's going on but many end users won't.

Are you guys any closer to putting a proper solution in place for this? When it comes to dev work I do hate to use the term 'not difficult' but surely adding an extra column for the EA and having it taken into account when displaying the amount owed to HMRC [within payroll] is worth the effort? It already takes it into account when importing the bills into accounting so the technology is there in some form [that's coming from a non-techie I might add before anybody screams at me!]

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PS: From not form

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6 Replies

Hi Kevin,

We have requested that the typo be corrected. So that should be updated soon. We are currently discussing how to best improve the wording, to make it clearer for users as well. So that may change in the coming weeks.

In regards to Employment Allowance deductions showing on the overview, I don't believe there are plans to change that. But it is being considered as a separate feature on payroll. I think the idea will be to keep the overview as it is now, but there could be a sub-menu in the navigation with an overview that shows the EA deductions. But nothing is confirmed yet. Payroll improvements are on the product roadmap, but it's not till later on in the year. But this is a feature requested quite often, so I'm sure it will be something discussed for possible implementation by the Product Team.

All the best,

Natasha

Best answer
9 years ago

I'm old enough to not worry about looking stupid but what does the disclaimer mean?

9 years ago

Means you might be claiming the NIC allowance but we don't show it in our figures so keep an eye on the calcs yourself instead of using our figures when paying HMRC as you'll probably pay too much :-)

9 years ago

Oh I see, but then, if you are using accounting, the correct liability is shown there and that's where I'd think most users would look to see how much to pay and when?

Far more important, and higher risk at the moment, is the sole director businesses that claims the allowance, Should there not be an extra paragraph in the warning for this?

If employee number = 1 and employee = director and EA allowance = yes, then ring bell.

BTW how about a P32 report, don't think anyone has asked for one of those before? ;)

9 years ago

Agreed - we do have a couple of clients not using the bookkeeping though where we still use CB for the payroll. And for those we have to then keep a manual running tally of the EA.

I just can't fathom why a piece of payroll software wouldn't be displaying it.

P32?? Never heard of one of those before?! ;)

9 years ago

Hi Paul & Kevin,

I have already asked if a warning can be put in place for sole director businesses. When the current wording is updated for the EA warning, I will ask that they include this as well.

I will speak to the Dev team about the P32 report. It's possibly something there are already plans to look at, in the next Payroll sprint.

Kind Regards,

Natasha

9 years ago

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