x Want to participate? Join the group to interact
  • State Suggested Answer
  • Replies 2 replies
  • Answers 1 answer
  • Subscribers 3 subscribers
  • Views 180 views
  • Users 0 members are here
Browse Forums
AutoEntry Announcements
10
topics
0
replies
AutoEntry General Discussion
4
topics
7
replies
Client Management Announcements
34
topics
0
replies
Client Management General Discussion
27
topics
44
replies
GoProposal Announcements
14
topics
0
replies
GoProposal General Discussion
0
topics
0
replies
Partner Edition General Discussion
69
topics
99
replies
June Chapman

Sage Business Cloud Payroll P32

SUGGESTED
Posted By

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.

  • 0
    SUGGESTED

    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

  • 0 in reply to Nigel Thompson

    Hi Nigel.  Thank you so much for your response.  I do indeed have a worker ticked as a deemed employee and wasn't aware of that until I checked.  However, HMRC confirmed that the full EA has been applied to the company so the employee is recognised as being on the payroll.  I have now amended the record so this shouldn't show up going forward.  Thanks again, much appreciated.

*Community Hub is the new name for Sage City