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National Insurance Contributions (NICs) Employment Allowance – an update

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Back in March we told you about the new NICs Employment Allowance and pointed you to guidance, to help you check your clients’ eligibility to claim it.

I’m pleased to say that, since its introduction in April this year, over half of all eligible businesses (725,000 employers at the end of June) have benefitted from the Employment Allowance, which offers businesses and charities up to £2,000 off their employer Class 1 NICs bill every year. This has resulted in around £500 million of employer NICs relief.

Employers can still claim the Employment Allowance for 2014-15, even though the tax year has started. If your clients ask whether they are eligible and how to claim, more information is available on GOV.UK.

In September your clients might receive an electronic Generic Notification Service (GNS) message from HMRC, encouraging them to check eligibility and claim the Employment Allowance, if they haven’t already done so.

It is important to remember, the allowance can only be claimed once for each employer and not for each PAYE scheme. So, even if an employer receives a reminder to claim the Employment Allowance, they must ensure they are only claiming once against one PAYE scheme, especially if the business runs multiple schemes. And it can only be claimed once for each employer or group of employers.

See more detailed guidance

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