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3. How do I tell HMRC when I've got Employment Allowance changes?

EPS: Employment Allowance1:57

"How do I tell HMRC when I've got Employment Allowance changes?"

Letting HMRC know about changes in your eligibility for Employment Allowance helps you pay the correct amount of National Insurance.

To tell HMRC about changes to your Employment Allowance:

  1. First, select the pay batch on: "Menu", then "Pay batches"
  2. Then tap: "Forms", then "EPS monthly"
  3. Once the EPS monthly is open, check the "Employment Allowance" heading.
  4. If it says that there's "no changes detected", then tap the blue "Employment Allowance" settings link.
  5. Make any changes you want to, your changes are now auto-saved.
  6. You'll now see a preview of all your pay batch's "Employment Allowance" settings that are ready to be sent through to HMRC.
  7. And finally, if you're all ready to send it to HMRC, tap: File with HMRC (at the bottom)

Keep in mind that:

  • If you're eligible for Employment Allowance, 1st Money automatically checkmarks "Employment Allowance" on the first EPS of the tax year or whenever there's a change.
  • Once you've claimed Employment Allowance, HMRC remembers your claim for the rest of the tax year.
  • You probably can't claim Employment Allowance if your "de minimis state aid" over the last 3 years is above a certain threshold.
  • Your exact threshold depends on your company's business sector.
  • If your Employment Allowance claim is rejected by HMRC, you'll get the rejection message from HMRC forwarded to you, letting you know why.

To learn more:

  • About Employment Allowance, go to GOV.UK.

And that's it! That's everything you need to know about telling HMRC about changes to your Employment Allowance!

Updated: Thu, Oct 19, 2023.

© 2020–2024 1st Money UK Holdings Ltd. All rights reserved.
www.1st.money/help/Payroll/EPS_Employer_Payment_Summary/3._How_do_I_tell_HMRC_when_I've_got_Employment_Allowance_changes