Sage Business Cloud Payroll and Sage 50c Payroll

Sage City is a great resource to start discussion about the Sage products and services you are using.

This group is to chat about Sage Business Cloud Payroll (formerly Sage One Payroll).

For all queries and discussion about Sage 50cloud Payroll, please click here to view their support group.

Parents
  • hi, i am using business cloud payroll & am new to it. I have been thrown in at the deep end. Ive just done my claim for employment allowance for £4k, i put this amount in state aid, is this correct? thanks

  • I'm new to this a bit too.  I dont understand employment allowance scheme, I own a small hair salon , can u explain what it is?

  • I know it's a bit late (with the year almost up).

    The Employer Allowance was created a few years ago but the entitlement to it was changed at the beginning of 20/21 so that it only benefitted small employers.  If your total employer Class 1 NI bill for 2019/20 was less than £100,000 you could apply for the EA which then exempted you from the first £4,000 er NI costs.  If your total er NI bill in the year is less than £4,000 you end up not having to pay any er NI to HMRC.  Prior to 2020/21 the EA was automatically given to all employers.

    The information in Sage seemed to disagree with the HMRC information in that HMRC says they won't send a letter to tell you your application was accepted (only if it failed) whereas Sage said to expect one (regardless).

    Once you tell Sage you have received the allowance it will allocate the £4,000 allowance to your NI payments (as will HMRC), reducing the amount on the P32 reporting the amount you need to send to HMRC.

    I think HMRC will retrospectively apply the EA if you apply later in the year so for a small employer you could actually end up in credit at HMRC - check your account at HMRC with your Gateway login.

    The EA could be seen as State Aid in certain business areas and has to be declared as such (I don't work in such a field and so an't comment further).

    See: www.gov.uk/claim-employment-allowance

Reply
  • I know it's a bit late (with the year almost up).

    The Employer Allowance was created a few years ago but the entitlement to it was changed at the beginning of 20/21 so that it only benefitted small employers.  If your total employer Class 1 NI bill for 2019/20 was less than £100,000 you could apply for the EA which then exempted you from the first £4,000 er NI costs.  If your total er NI bill in the year is less than £4,000 you end up not having to pay any er NI to HMRC.  Prior to 2020/21 the EA was automatically given to all employers.

    The information in Sage seemed to disagree with the HMRC information in that HMRC says they won't send a letter to tell you your application was accepted (only if it failed) whereas Sage said to expect one (regardless).

    Once you tell Sage you have received the allowance it will allocate the £4,000 allowance to your NI payments (as will HMRC), reducing the amount on the P32 reporting the amount you need to send to HMRC.

    I think HMRC will retrospectively apply the EA if you apply later in the year so for a small employer you could actually end up in credit at HMRC - check your account at HMRC with your Gateway login.

    The EA could be seen as State Aid in certain business areas and has to be declared as such (I don't work in such a field and so an't comment further).

    See: www.gov.uk/claim-employment-allowance

Children
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