Sage Accounting and Payroll
Employer’s Allowance for National Insurance
How to process the Employer’s Allowance for National Insurance.
This continues at £5,000 for the 2022/23 Tax Year. But there are certain changes to the rules, you need to apply again, see below for change of procedure.
The reduction in the NI you pay is reclaimed over the first few months depending on the amount of Employer’s NI you pay each month. It is deducted each month until the total of £5,000 has been recovered.
In the Payroll:
- In Company > Settings > there is a new button (bottom left) “Apply for EA”. You will not get a confirmation from HMRC, you can select the button after you have applied. HMRC will notify you if your application is refused.
- As usual print the monthly P32 Employer Payment Record which shows the Tax & NI payable for the month and the Employer’s Allowance.
In the Accounts:
There is no automatic inclusion of the Employer’s Allowance in the Nominal link, so it has to be processed manually.
- Select Nominal > Journal. Create a new Memorised Journal to Debit the PAYE/NI Control Account in the Balance Sheet and Credit the Employer’s NI account(s) in the Profit & Loss Account. (Note – if you have more than one you may have to calculate an approximate percentage to each account.)
- From the P32 Payment Record report extract the Employer’s Allowance and enter it the Memorised Journal that you have created each month until the Allowance has been totally used.
Are you on the latest version of 50 Accounts and Payroll?
Are you on the latest version of Sage 50 Accounts?
To ensure that you are benefitting from the latest Updates, go to Help > About > on your system and check that you have one of the following. If you have a Network version, all users must be on the same version:
50 Accounts and Instant Accounts
c2022 – 28.0.226.0 November 21
v2021 – 27.2.664 (19 Jul 21) the latest update.
50 Payroll
Payrolls are updated with a completely new version each Tax Year End.
Each year there is the Update which will include the Tax Tables for the New Tax Year as well as the Year End function for the current tax year.
The latest Update which is part of the Payroll Year End (see my other Post) was issued on 29th March 2022 for the 2022/23 Year is 28.01.360.
Accounting By Computer is as easy as ABC
March 2022 – New Payroll v28 & Payroll Year End
March 2022
Helpful Hints
Sage Business Systems
Payroll Year End – New v28 Payroll
New items that Sage Payroll incorporates:
- Easier access to Sage Q & A Weblinks from the software.
- In previous years, if you needed to notify HMRC of a Previous Year Update it was actioned using an Earlier Year Update (EYU). They are no longer available, it is replaced by a process via the software.
- The New Student Loan Plans are incorporated in the software.
- A new look Help Centre.
Payroll Year End Processing.
- Some clients like me to assist with Payroll Year Ends. In view of the short time ahead, book asap if you haven’t already.
- The last day of the 2021/22 tax year is 5 April.
- The deadline for submitting the Year End data is 19 April. You will be submitting your FPS (Final Payroll Summary) through your payroll system on the last payroll run. If you have to make any amendments use the EPS.
- This is also the date for the last payment of Tax and National Insurance for the 2021/22 Tax Year.
- P60s will still be issued to employees who were on the Payroll on 5th April; this must be done by 31 May. The software incorporates a form with full printing, so there is no need to obtain a supply of forms. There is also the option to send P60s by email, but, of course, you will need to enter email addresses in your employee’s record.
- P11d Returns must be submitted for Expenses/Benefits by 6 July.Payment of Class 1A NI on Benefits must be made by 19 July or 22 July if you pay by BACS
December 2021 – Sage 50 Accounts v28
May I wish all of my clients a Happy Christmas and a Healthy, Prosperous New Year.
Sage 50 Accounts v28.
You may have noticed that Sage released v28 of 50 Accounts a few weeks ago and they will have been contacting you to encourage you to install it.
I had been resisting the temptation to contact you about it since, a) Sage had not promoted any particular features and b) there had been none of the usual training and certification on the new product for their Business Partners.
Here are the major changes to the program:
- Improved Help Centre access and use.
- Optional automatic scheduled Backup
- Optional automatic scheduled Check Data
- Improved Remote Access
- Improved Business Dashboard
I am, therefore, for the sake of continuity, now recommending that you download and install v28.
As always, download the upgrade from Sage’s website and then install it from your Downloads folder. Do not try processing the upgrade over the Internet.
If you have any queries, or need assistance, please do not hesitate to contact me.