Employment Allowance

You may shortly receive enquiries from clients about the new Employment Allowance. Up to 1.25 million businesses and charities will benefit from it - and around 450,000 will not have to pay any Class 1 NICs at all in 2014-15. 

 On 6 March, HMRC sent employers an email, headed ‘Get up to £2K off your NICs bill’, highlighting the introduction of the Employment Allowance (up to £2,000 available for the tax year 2014-15 onwards) with a link to the guidance. Almost every employer who is a business or charity (including a Community Amateur Sports Club) paying employer Class 1 NICs on their employees’ or directors’ earnings will be eligible.

Employers need to claim the Employment Allowance using their 2014-15 payroll software, or HMRC’s Basic PAYE Tools.  

If your clients ask whether they are eligible for the Employment Allowance and how to claim it, more information is available.