Skip to main content

Employment Allowance

Posted by: , Posted on: - Categories: Uncategorized

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.

Sharing and comments

Share this page