Putting money into piggy bank

£2,000 National Insurance saving for employers

From April 2014 virtually every business, charity and community amateur sports club will be entitled to an annual ’employment allowance’ of up to £2,000 to reduce their liability for Class 1 Employer National Insurance Contributions (NIC)s. There are a few exceptions, for example those who employ personal, household or domestic staff such as nannies.

The allowance will be obtained via standard payroll software and also HMRC’s Real Time Information (RTI) system. The employer will offset the allowance against each monthly Class 1 secondary NICs payment until fully claimed or the tax year ends. Any unused allowance cannot be carried forward to the next year.

Contact us if you require help with your payroll.