Employment Allowance Incorrectly Claimed for Domestic Payroll

Employment Allowance Incorrectly Claimed for...

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I have taken over a domestic payroll mid-year and the previous accountants have claimed the Employment Allowance.  It's a domestic payroll where carers are employed to look after a person who is infirm so there is no business and it seems clear to me that the EA should not have been claimed.  So is there a mechanism to notify this to HMRC under RTI?  I will not continue to claim it, but the previous months claims do need to be cancelled somehow.  I am using Moneysoft payroll (a new user, it is good software) but their support could not come up with definitive guidance on what to do.

Thanks for any help

Tim

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By onicholson
23rd Sep 2014 16:34

Send an EPS with the claim status set to don't claim. That changes your status for the year and will put all of the claimed amount into your liabilities for the current month at HMRC's end. I don't know if HMRC might look into something like this further; I can't imagine it's a high priority for them.

Note that the indicator for the employment allowance is optional in the submission, so you need to make sure that you're filing a no claim instead of just filing a submission without any indicator at all. I can't tell you how you'd make sure Moneysoft does that, but that's what's needed.

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By Carolynne
23rd Sep 2014 17:25

I May have found it

I use Moneysoft.  If you look under employer details, under the 2nd tab for the Tax office, at the bottom there will be a box you can tick, to claim NIC allowance.  If this remains 'UNTICKED' and you enter all the year to date figures of the employee(s), including the tax and NI paid thus far into the tax and Nic actually paid report.  You can run 'Tax & NIC Actually Paid' report and see if it has brought the wrongly claimed amount back into play.  Please let me know how you get on with this. 

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