With only two months left of the current tax year you need to make sure you have submitted your claim for the £2000 Employment Allowance that many employers are entitled to. This allowances reduces your employers Class 1 National Insurance liability, if your Class 1 NI bill is less than £2000 you won’t pay a penny.
Are you eligible?
If you are a business or charity paying employers Class 1 National Insurance then you will be able to claim. There are a small number of employers who are not eligible for this scheme, these include:
- domestic employers
- public bodies or businesses who work mainly or wholly of a public nature, except charities
- service companies
- those who are part of a group that has already claimed the Employment Allowance
For more details on eligibility please look at the guidance note provided by HMRC.
How to claim?
Claiming your Employment Allowance should be a simple process through your payroll software or alternatively through HMRC Basic Tools.
You only need to claim Employment Allowance once, this automatically roles over to future tax years. If you become no longer eligible then you will need to mark this as such in your payroll records.