Payroll Employment allowance calculation changes?

Question asked by Edward Watkins 9 years ago

I just noticed this new message on payroll:

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

Is this a new change? I'm pretty sure clearbooks used to calculate this directly... If it is new, how exactly do I calculate the employment allowance in payroll?

If it's not new, I suppose I now need to back calculate all the overpaid tax....

Can someone from clearbooks clear this up? The error message gives no useful additional information.

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2 Replies

Hi Edward

I think the way Clearbooks handles the allowance hasn't changed. The allowance gets taken into account when you import the payroll into accounts - such that the payable to HMRC is net of the employers allowance.

However, some people use the summary from payroll to work out what to pay to HMRC. The summary in Payroll doesn't take the employers allowance into account, so if you use that you could be overpaying HMRC.

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9 years ago

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