No, I’m not talking about some dubious PPI claim or a claim for an accident you had at work in 1973, this is the ‘Employment Allowance’ where the Government will reduce your Employers’ National Insurance bill by £2,000.
Employment Allowance Background
I know what you’re thinking: “Surely this is too good to be true, the Government giving away money to small businesses?” My answer is “Well, it is true and don’t call me Shirley…” (Apologies for the ‘Airplane’ reference).
It was announced in the March 2013 Budget as a measure to encourage business growth and was introduced in April 2014.
How does it work?
The Allowance is restricted to one per employer, irrespective of how many PAYE schemes that employer has. For the 2014/15 tax year, it is claimed as an offset against each monthly Employers’ National Insurance payment that is due to be made to HMRC until the allowance is fully claimed or the tax year ends.
It can be claimed for this upcoming tax year too…!
For 2015/16, i.e. from next month, the £2,000 can be claimed as an offset to the Employers’ National Insurance liability as it arises.
It’s not too late to claim…but get a move on!
The good news is that if you haven’t yet claimed, you can still claim as long as this is done in the tax year, i.e. by 5 April. Following this, you would lose out on the 2014/15 Allowance although clearly you would still be able to claim the 2015/16 Allowance.
How do I claim?
Talk to your payroll provider or financial advisor to see if a claim has already been made for this year. Most claims can be made through the payroll software but if you have any difficulties or if you have any queries, please don’t hesitate to get in touch.
Until next time…
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