Employment Allowance

Hello

Thank you for contacting Clear Books support.

Do this before you start processing payroll!

To set up the Employment Allowance, you will need to submit a blank EPS with the declaration of the eligibility. This will enable it in Open Payroll.

The employment allowance will be deducted when you are transferring your bills onto the accounts module. This will be the reduction.

The information on Open Payroll shows the full calculations for all employees because if any of your employees leave and they go to a company without the employment allowance, the figures will be incredibly incorrect.

The reduction in the payments are done within the bill.

If you are an Open Payroll customer only, you will take your payroll figures from Clearbooks, but choose not to pay £2000 over the year.

All the best,

Vanish

In your reply above you said:
"The information on Open Payroll shows the full calculations for all employees because if any of your employees leave and they go to a company without the employment allowance, the figures will be incredibly incorrect."

I don't understand this statement. Please can you clarify how an employee leaving would affect their old employers claim for the employment allowance? Is there something in the HMRC guidance that you can point me to.

Thanks

Hello Ros,

The information will need to be kept for the employer's record keeping requirements of a minimum of 3 years. This is a requirement by HMRC. I understand that an employee leaving will not have anything to do with employer's NICs but the record keeping requirement is the important part.

Please can you look at this detailed guidance information which is on the HMRC site.
https://www.gov.uk/government/publications/employment-allowance-more-detailed-guidance

Hope this helps with answering your query.

Regards,

Vanish

Hi there,

How do I claim after I've submitted my first payroll?

Thanks,

Hello Mike,

You do not "claim" per se, you just do not pay £2000 over the course of the year in Employers NICs.

If you use Clear Books Accounts module and the Open Payroll module, you will be able to import your bill from Payroll into Accounts with the deduction already applied.

If you are only a Payroll customer, you will just pay £2000 less over the year.

Regards,

Vanish