01223 471 576

Mill House, Mill Court, Great Shelford
Cambridge, CB22 5LD


Claiming the employment allowance

Source: HM Revenue & Customs | | 19/04/2017

An annual employment allowance for businesses and charities, to offset against their employer's Class 1 NICs, was introduced in April 2014. The allowance can be claimed as part of the normal payroll process through RTI using an employer’s payroll software or HMRC’s Basic PAYE Tools.

The maximum amount available is currently £3,000 per year. For example, if an employer’s Class 1 NICs are £1,200 each month, in April and May the employment allowance used will be for the full amount and in June the remaining £600 would be used.

There are a number of excluded employers who cannot claim the employment allowance. For example, persons employed for personal, household or domestic work, such as a nanny or au pair and employment that is either wholly or mainly of a public nature. No allowance is available for deemed payments of employment income. In April 2016 the eligibility to claim the employment allowance was also removed from limited companies with a single director and no other employees.

 

Latest News

  • Tax Diary May/June 2017

    20/04/2017 - More...

    1 May 2017 - Due date for Corporation Tax due for the year ended 31 July 2016. 19 May 2017 - PAYE and NIC deductions

  • State Pension age review

    19/04/2017 - More...

    In March 2016, John Cridland CBE, the former Director General of the Confederation of British Industry (CBI) was

  • Furnished holiday lettings

    19/04/2017 - More...

    The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

Copyright © 2013 - Nicholas Cliffe