A £2,000 Employment Allowance is available from 6 April 2014 to employers who pay employer’s Class 1 National Insurance Contributions (NIC). Those employers who qualify will reduce their NIC bill by up to £2,000.
This is just one of the measures taken by the UK Government to help and support employers with the increased cost of employing staff.
Ensure that you make the claim and take advantage of this cut to your NIC bill.
How to claim the Employment Allowance?
- Claim your allowance using your own payroll software.
- Use HMRC’s basic PAYE tools.
- Simply reduce your employer Class 1 NIC payment by an amount of Employment Allowance equal to your Class 1 liability, up to a maximum of £2,000.
- Any unused allowance is then carried forward and can be claimed against the Class 1 liabilities for later months.
- You will be able to keep track of how much of the allowance you have used via HMRC’s online services.
Hints and tips…………..
- You can only claim the £2,000 allowance against one PAYE scheme.
- If your company is part of a group of companies, only one company can claim the allowance – you must decide which company will make the claim.
If you have any queries regarding the Employment Allowance, please do not hesitate to contact Sarah Seavor on 07712 218540 or sarah@seavorchartered.co.uk.
