SMP showing as unallocated credit how to allocate?

Didn't find your answer?

Hope someone can help...

we are a small business and have been using the HMRC - BPT to run our payroll everything has been working fine however we have an employee who has recently gone on to SMP, we have added this in to our recoverable amounts before submitting EPS but on the HMRC online account it shows an an unallocated credit...how to we get this allocated? 
 

Thank you in advance.

Replies (13)

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RLI
By lionofludesch
30th Jan 2024 18:00

Do HMRC owe you money or do you still owe them money, after taking credit for the SMP?

As an aside, now is the time to be looking at proper software that actually works and start using it from 6 April 2024.

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By spuddle
02nd Feb 2024 15:41

I believe the "credit" is adjusted each month for actual Mat pay paid, but you must submit a monthly EPS to inform the HMRC system that you have made payment of Mat Pay - otherwise, if you get to a payroll year end and you have any credit balance, they will be asking for a repayment. I seem to remember we had an issue because the final monthly payroll in the tax year was calculated to 31 March but the Mat Pay credit was calculated to 5 April, but that would be resolved in the following year...... You can go back and submit monthly EPS reports if you haven't done so.

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By spuddle
02nd Feb 2024 15:41

I believe the "credit" is adjusted each month for actual Mat pay paid, but you must submit a monthly EPS to inform the HMRC system that you have made payment of Mat Pay - otherwise, if you get to a payroll year end and you have any credit balance, they will be asking for a repayment. I seem to remember we had an issue because the final monthly payroll in the tax year was calculated to 31 March but the Mat Pay credit was calculated to 5 April, but that would be resolved in the following year...... You can go back and submit monthly EPS reports if you haven't done so.

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Replying to spuddle:
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By Leanne112
02nd Feb 2024 16:00

This is what is confusing. We submit an EPS each month and there are no outstanding submissions…just a section when we log in online that says unallocated credit totalling the amount of may pay we have paid but in the table below amounts all show £0.00

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Replying to Leanne112:
RLI
By lionofludesch
02nd Feb 2024 16:36

So, again ....

Do HMRC owe you money or do you still owe them money, after taking credit for the SMP?

Because if they owe you money, they won't send it unless you ask for it.

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Replying to lionofludesch:
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By Leanne112
02nd Feb 2024 19:31

All payments are up to date and nothing owed to HMRC am I right in thinking that because we don’t have anything to off set the credit to I have to contact them at the beginning of the new tax year for the refund? Or can it be done before that? Sorry I did reply to your original response but it doesn’t seem to have posted… thank you

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Replying to Leanne112:
RLI
By lionofludesch
02nd Feb 2024 20:10

Leanne112 wrote:

All payments are up to date and nothing owed to HMRC am I right in thinking that because we don’t have anything to off set the credit to I have to contact them at the beginning of the new tax year for the refund? Or can it be done before that? Sorry I did reply to your original response but it doesn’t seem to have posted… thank you

Ok - well, it's still not clear to me but I'm going to assume that, for some reason, you've paid all the PAYE, instead of deducting the SMP from what you owed.

If the SMP is more than the PAYE, you could have applied for funding. And you still can. You do, however, have to draw a line at 5 April 2024 and treat the two years separately.

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Replying to lionofludesch:
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By Leanne112
02nd Feb 2024 22:50

No PAYE is due… all months show £0.00
Employee earns less than the personal allowance and is part time minimum wage so there is not an amount of PAYE to deduction the SMP from…
Sorry I should have said all self assessment payments are up to date…

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Replying to Leanne112:
RLI
By lionofludesch
02nd Feb 2024 22:55

Ok. We're dragging it out of you bit by bit.

Have you applied for funding?

If no, apply. You won't get any money unless you ask for it.

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Replying to lionofludesch:
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By Leanne112
03rd Feb 2024 08:20

No I haven’t applied for funding, does this mean I contact the employer helpline and request the monies back that way?

Thank you for your help

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Replying to Leanne112:
RLI
By lionofludesch
03rd Feb 2024 08:54

Leanne112 wrote:

No I haven’t applied for funding, does this mean I contact the employer helpline and request the monies back that way?

Thank you for your help

There's an online form. Search for SMP funding.

Meanwhile, maybe you could confirm that you've checked that this lass has a valid SMP claim. If she doesn't, it'll be costing you £150 a week.

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Replying to Leanne112:
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By Leywood
03rd Feb 2024 08:54

+ 1 to Lion’s comment about asking your Accountant. He has the patience of a saint pulling teeth to get straight answers.

That said the answers in this instance are all on the hmrc website. ( but don’t ever use HMRC it instead of proper tax advice as it’s often wrong!)

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Replying to Leanne112:
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By FactChecker
02nd Feb 2024 23:03

I've been keeping out of this, because I really can't work out what you've actually done.

It doesn't help that I have never (and never would) use the BPT tool, so cannot advise on what appears where or why.
But I can't even get my head around what you were trying to do - so before going any further can you confirm that this employee definitely met all the eligibility criteria for SMP (including earning an average of at least £123 a week for the final 8 weeks of the 26 weeks of continuous employment leading into the ‘qualifying week’)?

If so, we can move on to what was paid to the employee and reported on the FPS - as well as what you hopefully reported in the EPS - before considering lion's point regarding funding assistance.

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Replying to Leanne112:
RLI
By lionofludesch
02nd Feb 2024 23:35

Leanne112 wrote:

Sorry I should have said all self assessment payments are up to date…

No, you shouldn't. Absolutely nothing to do with SMP. But it does suggest that you sadly need an accountant as you're way out of your depth in even thinking that was relevant.

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