From 6th April 2014 employers are able to claim Employment Allowance. This Allowance reduces the NIC Class 1 payable by employers by up to £2000 per year. The aim of this allowance is to make it easier and less of a financial burden on small businesses to employ staff.
Not all businesses can claim the Employment Allowance however. Employers that cannot claim this allowance are those that:
- employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, gardener, care support worker
- already claim the allowance through a connected company or charity
- are a public authority, this includes; local, district, town and parish councils
- carry out functions either wholly or mainly of a public nature (unless you have charitable status), for example:
- NHS services
- General Practitioner services
- the managing of housing stock owned by or for a local council
- providing a meals on wheels service for a local council
- refuse collection for a local council
- prison services
- collecting debt for a government department
The allowance can be claimed through your payroll software by automatically reducing the Employer NICs payable up to £2000. HRMC will automatically carry the claim forward for succeeding tax years.
Further information is available from the Government website at Employment Allowance.
Our experienced business advisors are available to help with any aspect of business and many of them are registered Growth Coaches. For a no obligation discussion contact us or call 0333 444 8522
