EA Allowance

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Hi

Does anyone know how to treat EA allowance if it hasn't been received in a financial year . Do I accrue or not?

thanks

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RLI
By lionofludesch
21st Oct 2023 18:15

You're going to need to set your stall out a bit better than that.

Try telling us a story.....

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Replying to lionofludesch:
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By im6894
21st Oct 2023 19:14

Thanks for the response….
Basically, we didn’t claim our EA allowance in April of this year as we normally do in this month. For example last year we had received 5k allowance so year end entries were to cr the Ni er liability in P&L and dr the Ni control account.
What I am confused with this financial yearend 31Aug23 is without having received the allowance how do I account for it in the year end accounts?

Hope this explains it a bit better!

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Replying to im6894:
RLI
By lionofludesch
21st Oct 2023 19:28

This is Employment Allowance Allowance, I take it? It belongs to the first £5000 of Class 1A NIC due for the new tax year.

Why are you claiming so late? It's clearly deliberate.

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Replying to lionofludesch:
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By im6894
21st Oct 2023 20:07

The reason for lateness is simply because it was forgotten in between the current payroll officer leaving and payroll being outsourced!

The EA allowance claim is for the tax year 22-23, so we have not missed the boat as such just a delayed claim (which is the problem) but one that would be falling outside of the business financial year which ended in Aug 23.
The payroll bureau is claiming it this October(23).

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Replying to im6894:
RLI
By lionofludesch
21st Oct 2023 20:44

It wasn't me who said you'd missed the boat.

Again, it belongs to and is to be matched with the first £5000 of Class 1A in the tax year.

So how much Class 1A does the company pay per month?

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Replying to lionofludesch:
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By frankfx
22nd Oct 2023 15:22

lionofludesch wrote:

This is Employment Allowance Allowance, I take it? It belongs to the first £5000 of Class 1A NIC due for the new tax year.

Why are you claiming so late? It's clearly deliberate.

Class 1

not Class 1A

No marks for an A*!

1A applies to benefits in kind

There is a 4 year window for EA claims.

I would accrue for the recoverable EA.

OP you will soon know the precise amount, if not already ascertained.

Thanks (1)
Replying to frankfx:
RLI
By lionofludesch
22nd Oct 2023 15:44

frankfx wrote:

lionofludesch wrote:

This is Employment Allowance Allowance, I take it? It belongs to the first £5000 of Class 1A NIC due for the new tax year.

Why are you claiming so late? It's clearly deliberate.

Class 1

not Class 1A

No marks for an A*!

1A applies to benefits in kind

There is a 4 year window for EA claims.

I would accrue for the recoverable EA.

OP you will soon know the precise amount, if not already ascertained.

[facepalm]

Ah you're right frank.

I meant secondary class 1, of course.

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Replying to frankfx:
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By im6894
22nd Oct 2023 16:00

Thank you!

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Routemaster image
By tom123
21st Oct 2023 18:57

If you didn't put qualifying employees through payroll, and also then deduct EA from the bill, then you have missed the boat.

What time period are we talking about - which year end?

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By RobbieT
23rd Oct 2023 10:15

.

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