Employers Allowance For NI
We have noticed a number of new clients have not been claiming their Employers Allowance for NI through payroll.
We have saved each client up to £4000 each when taking over new payrolls recently and checking if they have enabled the employment allowance claim.
This is easily missed, particularly by smaller employers without the expertise or knowledge when running their payrolls in house. We suggest checking your payroll now.
The Employers allowance started in April 2014 and reduces the employers NI contributions by the first £2000 in each tax year until April 2016.
From April 2016 the allowance has been increased to £3000.
The good news is you can claim back any unclaimed allowance by calling HMRC.
Eligibility
You can claim Employment Allowance if you’re a business or charity (including community amateur sports clubs) paying employers’ Class 1 National Insurance.
You can also claim if you employ a care or support worker
You can only claim Employment Allowance for one PAYE scheme.
If you’re part of a group, only one company or charity in the group can claim the allowance.
From April 2016, you can’t claim if:
- you’re the director and only paid employee in your company
- you employ someone for personal, household or domestic work (eg a nanny or gardener) – unless they’re a care or support worker
- you’re a public body or business doing more than half your work in the public sector (eg local councils and NHS services) – unless you’re a charity
- you’re a service company with only deemed payments of employment income under ‘IR35 rules’
Further guidance from HMRC can be found here.
For any help on this or any other payroll related matter – contact Highland Payroll Services on 01309 641222
