I've recently noticed a new line on my P32 called 'PAYE offset against NI Employment Allowance' - this is the 2nd line under PAYE values. After speaking to an advisor over the phone I've been informed that because I haven't submitted any EPS submissions to record the monthly PAYE liability Sage has automatically started to knock off some of the unused employment allowance against my PAYE liability.  This doesn't make any sense from a technical point of view as the employment allowance is only supposed to be deducted from employers NIC, so I can't understand why Sage would start deducting the employment allowance from the PAYE/Income tax? Surely this is 100% incorrect?

As an accountancy firm who have used (and still use) Sage 50 Cloud Payroll (desktop) for 200 employers the EPS submissions via Sage Business Cloud Payroll make no sense. An EPS isn't usually required unless you have amounts to offset against your liability? and the FPS is submitted to record the payment due. 

I think that the EPS rule on Sage Business Cloud Payroll could be made clearer to employers using it - espeically when they have moved over from Sage 50 Cloud payroll (desktop) where an EPS isn't required unless there is no payment due and/or CIS/maternity to reclaim. 

As a result of this problem, my revised amount due (bottom of the P32 page) is incorrect and has been for the last few months.