This article is only relevant for users who have migrated to Sage Payroll from another payroll provider part-way through the tax year. 

You must enter the employment allowance value reclaimed to date. Without this figure, Sage Payroll won’t know what's already claimed and therefore what you're still entitled to. 

I haven't processed a pay run yet

You must enter the missing year to date value for employment allowance. Once entered, the calculations in Sage Payroll will continue on from your previous software. The P32 will reduce your liability by the correct amount and continue to track any remaining employment allowance balance. 

I’ve processed a pay run

With no Allowance Used figure entered, it's possible you have now over claimed your employment allowance for the year.

Entering the missing employment allowance values now, will mean that the next pay run you process will recalculate the amount you're entitled to.

Any amount you’ve overclaimed will show as a negative employment allowance value to correct your liability with HMRC.

Follow the steps above and process your next pay run as normal.

To claim employment allowance for previous tax years

You need to contact HMRC about reclaiming for previous tax years. Read the HMHC guidance at .gov.uk

They can match unclaimed allowance against outstanding payments or offer you a refund.

You can't use Payroll to reclaim previous tax year allowances.

Employment Allowance