To Update the P32 with the claimed Employment Allowance

You must have previously informed HMRC that you want to claim the allowance before you can reduce your payment of Employer Class 1 NICs. You only need to inform HMRC once - not once every tax year. So if you claimed the allowance in the previous tax year you don't need to inform HMRC that you're going to claim it again before reducing your payment of Employer Class 1 NICs.

Follow these steps to update the P32 with the employment allowance that you are claiming for the tax month or quarter.

1. Open the Payroll folder and then click P32 Processing or click the Payroll & HR tab on the Ribbon Bar and then click Payroll - P32 Processing.

2. Open the Employment Allowance form from the Action menu, enter the amount of the Employment Allowance you wish to claim, up to the annual limit. Select OK and close the P32 Processing form.

- You can claim the full allowance in a single month if your employer's NICs due exceeds the limit. You should enter the amount claimed on the each month on the P32 Processing - Employment Allowance form.

- When you pay Income Tax and employer's and employees' NICs to HMRC you must adjust your payment by the amount of the Employment Allowance you are claiming.