An illustration of employees waiting for their wages

National Insurance Allowance for Employers

£2,000 National Insurance Employers allowance

From April 2014 there will be a £2,000 allowance available for most employers who pay Class 1 National Insurance (with some notable exceptions). This can be claimed via the payroll and can be claimed as soon as the payments of Class 1 National Insurance allows.  Any unused allowance will be rolled over to the following year automatically.

The claim is made using your payroll software or the HMRC payroll tools by deducting from the Class 1 amount payable.

The restrictions on who can claim can be found in full on the HMRC website. You cannot claim the allowance against the employment of personal, household or domestic work such as a nanny, gardener or support worker. Public authorities are also unable to claim, although charities may be eligible. If you are part of a group structure only one member of the group can claim the allowance.

If your business runs more than one PAYE scheme you can only claim using one scheme and cannot change which scheme once the deductions have commenced.

And in other NIC news…..

No NIC for under 21’s

A proposal has been made to abolish employers’ NIC for the employment of those aged under 21 from 6 April 2015 up to the upper earning limit. This limit is expected to be £813 per week in 2015/16.  The full details of this scheme are still to be approved by parliament and we will provide full details once they are available.