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Date for claiming employment allowance

What's the latest date for claiming employment allowance for month 1?

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What's the latest date for claiming employment allowance to ensure it is allocated from month onwards?  I had assumed it was today, but on second thoughts, 19th is the last day to make amendments for month 12 of last year.  So, would I be correct in assuming it's 19th May to ensure it is set towards month 1 of this current year?

Thanks.

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By kathyk0410
19th Apr 2021 09:24

As it is on an EPS I would assume that it will be the 19/05.

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By Barbara G
19th Apr 2021 10:11

Many thanks Kathy. I thought so too and you've put my mind at rest.

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By Hugo Fair
19th Apr 2021 12:34

Actually, neither or either (if I've understood your question properly)!

EA is a cumulative annual calculation made (by HMRC) each month ... so:
* if first claimed in April, then HMRC will attempt to deduct £4,000 from your ER Class 1 NICs year-to-date (but obviously capped at the total of your ER Class 1 NICs year-to-date if that is less than £4,000 - with any 'excess' not claimable retained in the 'pot' for next month's claim).
* if however first claimed in May, then HMRC will perform the exact same calculation - but with an opening 'balance' of £4,000 (not the reduced pot after paying the April claim).

So, at the end of May (or strictly speaking as at 19th June) you will have 'received' the same amount of EA irrespective of whether you first claimed in April or May. The important thing to understand is that your EA claim doesn't start from a date that you've submitted ... it is merely switched 'on' (for the whole tax year) whenever you tick the EPS box.

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Replying to Hugo Fair:
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By frankfx
19th Apr 2021 12:53

Hugo Fair wrote:

Actually, neither or either (if I've understood your question properly)!

EA is a cumulative annual calculation made (by HMRC) each month ... so:
* if first claimed in April, then HMRC will attempt to deduct £4,000 from your ER Class 1 NICs year-to-date (but obviously capped at the total of your ER Class 1 NICs year-to-date if that is less than £4,000 - with any 'excess' not claimable retained in the 'pot' for next month's claim).
* if however first claimed in May, then HMRC will perform the exact same calculation - but with an opening 'balance' of £4,000 (not the reduced pot after paying the April claim).

So, at the end of May (or strictly speaking as at 19th June) you will have 'received' the same amount of EA irrespective of whether you first claimed in April or May. The important thing to understand is that your EA claim doesn't start from a date that you've submitted ... it is merely switched 'on' (for the whole tax year) whenever you tick the EPS box.

Yes, it's a box ticking necessity.
Boolean.

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Replying to Hugo Fair:
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By Barbara G
19th Apr 2021 12:55

Thanks. We want the EA claim to show on HMRC records from the first month of this tax year, but don't want to switch it on until 19th May if we can hold off, mainly because we're too busy to be going through all our monthly payrolls which aren't due 'til the end of the month, to have to switch on the employment allowance if we can wait 'til 19th May, which it appears we can. I got it into my head the deadline for EPS submissions was 19th April, but I think that's for month 12 of last year, not month 1 of this year.

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Replying to Hugo Fair:
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By Hazel Accounts
19th Apr 2021 13:19

I agree with you - it's for the whole tax year (or not).

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