Employers are you claiming your Employers Allowance?
Most employers are entitled to claim Employers allowance worth £3000 this tax year against your business National Insurance, but many are missing out.
We have identified refunds worth £16,000 for new clients in April alone when setting up their payroll. Many small employers running their payroll in house appear to be unaware of this significant benefit.
Fortunately employers can claim the overpayments back for the last 2 years.
The Employers allowance will reduce employers’ Class 1 National Insurance each time payroll is run until the £3,000 has been exhausted or the tax year ends (whichever is sooner).
You can only claim against Class 1 National Insurance you’ve paid, up to a maximum of £3,000 each tax year. You can still claim the allowance if you pay less than £3,000 a year.
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.
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’
How to claim
Claims are made through your payroll software.
More details on Employers allowance can be found here.
Employers are you claiming your employers allowance? – Highland Payroll Services