Sage Business Cloud Payroll P32

Question

Having contacted HMRC regarding some discrepancies with my P32 against the Gateway figures (now resolved). I asked the question what is the amount on the P32 'Employers NIC's not eligible to be offset against NI Employment Allowance'. Even after transferring me to a different adviser, they were unable to answer and had not come across this before.and suggested I ask Sage to clarify? 
 Can anyone help with this? TIA.

Nigel Thompson · Answer

Hi June, 
 Thank you for using the Community hub. 
 The NIC which isn't eligible to be offset against the Employment Allowance, is NIC collected from Deemed employees. 
 An example of a Deemed employees would be a contractor who is "employed" by someone else but you are paying for their work directly via your payroll. 
 This is also known as IR35, and off-payroll working. 
 The tax and NIC liability of the Deemed person will be collected by yourself on behalf of HMRC. 
 It is that NIC which the Employment Allowance can't be used against. 
 There is more information in the article link below, if you are interested. 
 Off-payroll working rules - IR35. 
 If you have values on line 8 in your P32, make sure you have not any employees wrongly selected as Deemed. 
 Read the section in the article "Correcting an incorrectly marked worker". 
 Kind regards, 
 
 Nigel 
 Sage UKI

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