HMRC £2k NI allowance - is this being implemented?

Hello Asher,

Clearbooks Open Payroll will be implementing this ready for the tax year 2014/15.

The Employers Allowance will be a tick box in Employers > Details section.

The amount will show up within Employer > RTI > File EPS, with the full amount being put into that filing.

The tickbox is there now you to turn on but any submissions you make before the 6th of April will not include this allowance. On or after the 6th of April, that allowance will be accepted in an RTI submission.

Let me know if you need any further assistance.

Regards,

Vanish.

That's great. Thanks for the quick response.

I have run payroll for the first time this tax year and ticked the relevant box but the software still shows employer's NI as payable?

Hello Mark and Asher,

The information on the Open Payroll module does show this amount as NIC payable because if your employee leaves half way through the year, you will need to provide this information via the P45.

The way in which the allowance is deducted is at the billing stage. When you import your bills onto ClearBooks, you will see the deduction there.

If you only use Open Payroll (and not the accounting section), you will just not pay £2000 over the course of the year.

Hopefully this clarifies the issue for you Mark.

Vanish

Employer's NI is not reported on P45s anyway so I don't understand the explanation.

Hey Mark,

Apologies, the reason it is kept is because it is a legal requirement to have the full information as per HMRC rules. It also forms part of the P11 form.

If there is no employers NICs recorded, it will not give you a true position of the payroll you have been processing.

Regards,

Vanish

Thanks. Unfortunately that means having to manually calculate the amount payable to HMRC each month, even if that is subtracting one figure from another. It would be easier if the software provided a P32 form showing the actual amount due. For this reason I won't be using Open Payroll - a shame because the software has a good feel about it.

Hello Mark,

Sorry about that, we will not be able to implement P32s at the moment. The development team will be aiming to add this in the future.

Regards,

Vanish