Good Morning
I have run my period end Tax month 12 - 12 which includes wk 52 and it has calculated employment allowance to be deducted off Paye/NI payment for 5th April total £1,397.67 which I believe should be for Wk 1 2016/2107.

I have checked my Period end Tax month 1 - Tax month 12 to check employment allowance deducted for the year end 2015/2106 and this is correct £2,000.00.

Can you advise please.

Jean

Hi Jean,

If the Employment Allowance is calculated on Month 12's P32, after it has already been claimed in previous months, it means that the P32 has been ran cumulatively. The P32 is an Employer Payment Record and should only be ran for the individual period that you're paying HMRC for. The P32 should only be ran cumulatively if you pay HMRC quarterly or annually.

For Sage 50 Payroll to correctly calculate how much employment allowance you've reclaimed so far, you must complete the Payments of Tax/NICs table in the HMRC Payments window. To do this, either:

• Manually enter values for the employment allowance you've reclaimed so far in the Payments of Tax/NICs table. You can find this in Company > Settings > HMRC Payments.
• Or, rerun the P32 report for each tax month from when you enabled employment allowance.

If you use e-Banking, when you run the P32 you're asked if you want to record employment allowance, employer's NI and total amount due. If you use the Collector of Taxes wizard to create a payment file to pay HMRC, you must clear the check box each time you run the P32.

Article 11251 gives further details on running the P32.

For more information on employment allowance, including answers to other common questions about it, please refer to article 31754. 

Thanks,

Brian