Claim Employment Allowance and save up to £2,000 per year?

From 6 April 2014 employers have been able to claim the Employment Allowance which will reduce their employer Class 1 National Insurance contributions (NICs) by up to £2,000 per year.

The Employment Allowance is available to businesses and charities (including Community Amateur Sports Clubs) that pay employer NICs on earnings of employees or directors.

How to claim

Once an initial claim has been made, HMRC will automatically carry it forward to the next tax year, regardless of any changes in payroll software. Therefore it is important to check at the beginning of each year that there have been no other changes in relevant circumstances. Employers who are exempt from filing, or unable to file online, can make a claim at the beginning of the tax year using the paper Employer Payments Summary (EPS).

Excluded employers

• Personal, household or domestic work
• Public authorities
• Functions either wholly or mainly (over 50%) of a public nature (unless charities)
• Deemed payments of employment income for personal and managed service companies.