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Posted Mon, 30 Oct 2023 15:17:40 GMT by
Hi all, we had a bit of trouble getting the Paye reference to start paying so we had a bunch of FPS to submit all at the same time. I have just gone to pay the bills for Paye as they are due and noticed the NI was very high compared to what we expected. Looking into it, it seems we forgot to submit the EPS regarding the Employment Allowance at the time. I am just wondering how to handle the situation and how a backdated Employment Allowance works. As the business is very new we had a lot of initial outlay and were relying on the Emplyoment Allowance for this first payment. Do the previously calculated bills get adjusted once the EPS is submitted and the Employment Allowance is active? How is the Emplyoment Allowance backdated with regards to already paid NI, is there a refund etc which is issued or does it just start to kick in going forward? Thanks in advance.
Posted Wed, 01 Nov 2023 10:01:11 GMT by HMRC Admin 17

You will need to send an EPS to claim the 2023/24 Employment Allowance.

If eligible, this will be credited to your PAYE account as a lump sum, based on your current Employer NI liability.

If you have already made payment for the full liabilities in the previous months, the Employment Allowance
claim will create a credit on your PAYE account.

You can self-serve this credit by reducing your future payments towards your PAYE liabilities .

Thank you.
Posted Wed, 01 Nov 2023 11:03:41 GMT by
Thanks for the reply. Currently liability is around 3500. I do not think we will hit the 5000 limit by the end of the tax year, will any remaining credit be refunded?
Posted Tue, 07 Nov 2023 10:48:27 GMT by HMRC Admin 8
Employment Allowance is up to £5,000 and the amount credited will only be £3,500 if your annual employer NIC bill is £3,500.
You will not be given a credit for any unused alowance.
Thank you.
Posted Tue, 07 Nov 2023 15:04:13 GMT by
Hi, thanks for the reply and I understand that but what im asking is that from now until the end of the tax year the NIC bill will not reach 5,000. At the end of the year will the 5000 be backdated to cover some of the 3500 NIC ive already paid. So for example if my bill up from now until the end of the year is £2500, and I dont have to pay this due to the Employment Allowance being applied will the Employment Allowance retroactivly be applied to the 3500 ive already paid effectivly making my NIC bill for the year £1000 which would mean a £2500 refund.
Posted Fri, 10 Nov 2023 11:00:08 GMT by HMRC Admin 20
Hi Thunderbug,
If your bill for Employers NIC is 3500 for the year then 3500 worth of credit will be added to your PAYE account.
If your bill is 6000, then 5000 credit will be added.
If you send the EPS after 22nd of oct then the Employment Allowance will be added 22nd of NOV. and the credit will be the same amount as the NIC bill.
Thank you. 

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