Changes to National Insurance

Changes to National Insurance

 

Fact Sheet

 

from:    Lisa Kennery

The Government has recently introduced a number of changes to national insurance and further measures affecting both employers and individuals are in the pipeline.

 

This factsheet provides an overview of some key changes, as well as offering advice on a range of strategies to help minimise your national insurance bill.

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EMPLOYMENT ALLOWANCE

 

The Employment Allowance was introduced in April 2014, with the aim of reducing the employer national insurance liability for businesses and charities, and encouraging businesses to expand and take on new staff.

 

While a small number of exclusions apply, most businesses, charities and Community Amateur Sports Clubs are entitled to claim an annual reduction of up to £2,000 in their employer national insurance contributions (NICs) bill.

 

There are rules to limit the Employment Allowance to a total of £2,000 where there are ‘connected’ employers. For example, two companies are connected with each other if one company controls the other company.

 

The employer’s payment of PAYE and NICs is reduced each month to the extent it includes an employer Class 1 NIC liability until the £2,000 limit has been reached.

 

The allowance can be claimed via payroll software or HM Revenue & Customs (HMRC) Basic PAYE Tools.

 

Do contact us if you believe you are entitled to the allowance as it is possible to claim up to four years after the end of the tax year in which the allowance applies.

 

There are some exceptions for employer Class 1 liabilities which can be covered by the Employment Allowance including liabilities arising from:

 

  • a person who is employed (wholly or partly) for purposes connected with the employer’s personal, family or household affairs
  • the carrying out of functions either wholly or mainly of a public nature (unless charitable status applies), for example NHS services and General Practitioner services
  • employer contributions deemed to arise under IR35 for personal service companies.

With effect from 6 April 2015 Employment Allowance has been extended to those employing care and support workers.

 

If you need guidance on this area please do get in touch so that we can offer specific advice.

 

From April 2016 the Employment Allowance will increase to £3,000.

 

However, companies where the director is the sole employee will no longer be able to claim this allowance.

 

Who will benefit

 

The Government announced the increase in the Employment Allowance in recognition of the fact that the new National Living Wage (NLW) may increase costs for some businesses.

 

Up to 90,000 employers are expected to see their employer NICs liability reduced to zero, allowing businesses to employ up to four full time workers on the new NLW from next year, without paying any NICs.

 

SCRAPPING NICs FOR UNDER-21s

 

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From 6 April 2015 employer NICs for those under the age of 21 are reduced from the normal rate of 13.8% to 0%. For the 0% rate to apply the employee will need to be under 21 when the earnings are paid.

 

This exemption will not apply to earnings above the Upper Secondary Threshold (UST) in a pay period.

 

The UST is a new term for this new NIC exemption. It is set at the same amount as the Upper Earnings Limit (UEL), which is the amount at which employee NICs fall from 12% to 2%.

 

The weekly UST is £815 for 2015/16 which is equivalent to £42,385 per annum.

Employers will be liable to 13.8% NICs beyond this limit.

 

In the Second Budget it was confirmed that the UEL will increase in line with the income tax higher rate threshold. This will increase to £43,000 in 2016/17 and to £43,600 in 2017/18.

 

The new rules apply to both existing employees and employers taking on new staff.

 

They do not affect an individual’s entitlement to the State Pension or contributions based benefits such as Statutory Sick Pay or Statutory Maternity Pay. The employee NICs due are unaffected and remain payable by the employee.

 

ABOLISHING NICs FOR APPRENTICES UNDER-25s

 

The Government will abolish employer NICs up to the UST for apprentices aged under 25 with the stated aim of encouraging the employment of younger workers and boosting the economy by bridging the skills gap.

 

From April 2016, employers who engage apprentices under the age of 25 will be able to claim exemption from employers’ NICs on the cost of the apprentice’s salary up to the UST.

 

Detailed regulations will be issued on the NICs for apprentices including the definition of an apprentice.

 

Who will benefit

 

The new measure is expected to save employers an estimated £105 million in employers’ NICs during its first year of operation.

 

NEW CLASS 3A NICs

 

With effect from 6 April 2016, a new single-tier State Pension will replace the existing two-part system plus various means-tested benefits, for those reaching State Pension Age on or after 6 April 2016.

 

The Government is providing a one-off opportunity to allow existing pensioners and those reaching State Pension Age before 6 April 2016 to top up their additional State Pension, by up to £25 per week by paying Class 3A voluntary NICs.

 

How it works

Each unit of Class 3A contributions will result in £1 per week of additional State Pension. The price of Class 3A is based on an actuarially fair rate with prices varying between £127 and £934 per unit depending on the purchaser’s age.

 

Those wishing to take advantage of the Class 3A contribution must meet the following conditions:

 

  • They must be entitled to a UK State Pension
  • They must reach State Pension Age before 6 April 2016.

The facility will apply from 12 October 2015 to 5 April 2017, for eligible individuals.

 

The new Class 3A contribution will not replace the existing Class 3, and those taking up the new Class 3A will be advised to consider making Class 3 contributions where appropriate.

 

Applications and payments relating to Class 3A contributions will be dealt with by HMRC.

 

Who will benefit

 

The transitional measures are likely to be of particular benefit to those with low earnings, particularly women and carers, who tend to have low Additional State Pension entitlement, and also the self-employed who are excluded from the State Earnings Related Pension Scheme (SERPS) and the State Second Pension.

 

Please note that receiving extra Additional State Pension could impact on certain state benefits. It is important to consider a number of areas when deciding whether to make Class 3A contributions. Please contact us for further advice.

 

ADDITIONAL FUTURE MEASURES

 

Abolishing Class 2 and reforming Class 4 NICs

 

The Coalition Government previously introduced significant changes to Class 2 NICs, resulting in the introduction in April 2015 of new provisions for the collection and payment of Class 2 NICs via self-assessment, rather than direct debit generally on a monthly or six monthly basis.

 

From 6 April 2015 liability to pay Class 2 NIC will arise at the end of each year. The amount of Class 2 NICs due will still be calculated based on the number of weeks of self-employment in the year, but will be determined when the individual completes their self-assessment return.

 

It will therefore be paid alongside their income tax and Class 4 NICs. For those who wish to spread the cost of their Class 2 NICs, HMRC will retain a facility for them to make regular payments throughout the year.

 

Those with profits below the stated threshold no longer have to apply in advance for an exception from paying Class 2 NICs. Instead they will have the option to pay Class 2 NICs voluntarily at the end of the year so that they may protect their benefit rights.

 

The Government has announced that Class 2 NICs will be abolished in this Parliament and it will reform Class 4 NICs to include a contributory benefit test.

 

MINIMISING THE NIC BILL

 

We can work with you on a range of ideas for saving employer and/or employee NICs.

 

Dividends instead of salary/bonus

 

For limited companies you should consider paying dividends rather than a salary/bonus.

 

Where directors are in receipt of a salary/bonus from a company, the NIC cost may be such that part of the payment could be more cost effectively made as a dividend. There are special rules for some companies providing personal services.

 

The decision on whether to pay a dividend is complex because doing so may influence the value of the company’s shares and therefore increase the liability to capital gains tax and inheritance tax. There is also a maximum amount that may be paid, based on the company’s results.

 

Further strategies you may also want to consider:

 

  • Increasing the amount the employer contracts to contribute to company pension schemes.
  • Share incentive plans (shares bought out of pre-tax and pre-NIC income – this is a specialist area. Please get in touch for advice).
  • Salary sacrifice arrangements in respect of tax-free benefits in kind, such as the provision of childcare.

 

For further advice on national insurance contributions, please contact us. We have expertise in all areas of running a business and would be delighted to assist you

 

 

 

Changes to National Insurance

 

From The Tax Team and The Payroll Team at Pierce

Changes to National Insurance

National Insurance shutterstock_15678070

The Government has recently introduced a number of changes to national insurance and further measures affecting both employers and individuals are in the pipeline.

We provide an overview of some key changes, as well as offering advice on a range of strategies to help minimise your national insurance bill.

 

New Staff shutterstock_221213821

EMPLOYMENT ALLOWANCE

The Employment Allowance was introduced in April 2014, with the aim of reducing the employer national insurance liability for businesses and charities, and encouraging businesses to expand and take on new staff.

While a small number of exclusions apply, most businesses, charities and Community Amateur Sports Clubs are entitled to claim an annual reduction of up to £2,000 in their employer national insurance contributions (NICs) bill.

There are rules to limit the Employment Allowance to a total of £2,000 where there are ‘connected’ employers. For example, two companies are connected with each other if one company controls the other company.

The employer’s payment of PAYE and NICs is reduced each month to the extent it includes an employer Class 1 NIC liability until the £2,000 limit has been reached.

The allowance can be claimed via payroll software or HM Revenue & Customs (HMRC) Basic PAYE Tools.

Do contact us if you believe you are entitled to the allowance as it is possible to claim up to four years after the end of the tax year in which the allowance applies.

There are some exceptions for employer Class 1 liabilities which can be covered by the Employment Allowance including liabilities arising from:

  • a person who is employed (wholly or partly) for purposes connected with the employer’s personal, family or household affairs
  • the carrying out of functions either wholly or mainly of a public
  • nature (unless charitable status applies), for example NHS services and General Practitioner services
  • employer contributions deemed to arise under IR35 for personal service companies.

With effect from 6 April 2015 Employment Allowance has been extended to those employing care and support workers. If you need guidance on this area please do get in touch so that we can offer specific advice.

 

Under 21's shutterstock_134992751

SCRAPPING NICs FOR UNDER-21s

From 6 April 2015 employer NICs for those under the age of 21 are reduced from the normal rate of 13.8% to 0%. For the 0% rate to apply the employee will need to be under 21 when the earnings are paid.

This exemption will not apply to earnings above the Upper Secondary Threshold (UST) in a pay period. The UST is a new term for this new NIC exemption. It is set at the same amount as the Upper Earnings Limit, which is the amount at which employee NICs fall from 12% to 2%. The weekly UST is £815 for 2015/16 which is equivalent to £42,385 per annum. Employers will be liable to 13.8% NICs beyond this limit.

The new rules apply to both existing employees and employers taking on new staff. They do not affect an individual’s entitlement to the State Pension or contributions based benefits such as Statutory Sick Pay or Statutory Maternity Pay.

The employee NICs due are unaffected and remain payable by the employee.

Who will benefit

The Government expects that this change will lift around 1.5 million young people out of employer NICs completely, with an average saving of £355 per employee. The rules mean that employing someone on an annual salary of £12,000 will be at least £500 cheaper, while paying an individual £16,000 per annum will cost at least £1,000 less.

 

Apprentices shutterstock_152179931

ABOLISHING NICs FOR APPRENTICES UNDER-25s

The Government will abolish employer NICs up to the UST for apprentices aged under 25 with the stated aim of encouraging the employment of younger workers and boosting the economy by bridging the skills gap.

From April 2016, employers who engage apprentices under the age of 25 will be able to claim exemption from employers’ NICs on the cost of the apprentice’s salary up to the UST. Detailed regulations will be issued on the NICs for apprentices including the definition of an apprentice.

Who will benefit

The new measure is expected to save employers an estimated £105 million in employers’ NICs during its first year of operation.

 

Pensioners

NEW CLASS 3A NICs

With effect from 6 April 2016, a new single-tier State Pension will replace the existing two-part system plus various means-tested benefits, for those reaching State Pension Age on or after 6 April 2016.

The Government is providing a one-off opportunity to allow existing pensioners and those reaching State Pension Age before 6 April 2016 to top up their additional State Pension, by up to £25 per week by paying Class 3A voluntary NICs.

How it works

Each unit of Class 3A contributions will result in £1 per week of additional State Pension. The price of Class 3A is based on an actuarially fair rate with prices varying between £127 and £934 per unit depending on the purchaser’s age.

Those wishing to take advantage of the Class 3A contribution must meet the following conditions:

  • They must be entitled to a UK State Pension
  • They must reach State Pension Age before 6 April 2016.

The facility will apply from 12 October 2015 to 5 April 2017, for eligible individuals.

The new Class 3A contribution will not replace the existing Class 3, and those taking up the new Class 3A will be advised to consider making Class 3 contributions where appropriate.

Applications and payments relating to Class 3A contributions will be dealt with by HMRC.

Who will benefit

The transitional measures are likely to be of particular benefit to those with low earnings, particularly women and carers, who tend to have low Additional State Pension entitlement, and also the self employed who are excluded from the State Earnings Related Pension Scheme (SERPS) and the State Second Pension.

Please note that receiving extra Additional State Pension could impact on certain state benefits. It is important to consider a number of areas when deciding whether to make Class 3A contributions.

 

ADDITIONAL FUTURE MEASURES

Abolishing Class 2 and reforming Class 4 NICs

The Coalition Government previously introduced significant changes to Class 2 NICs, resulting in the introduction in April 2015 of new provisions for the collection and payment of Class 2 NICs via self assessment, rather than direct debit generally on a monthly or six monthly basis.

From 6 April 2015 liability to pay Class 2 NIC will arise at the end of each year. The amount of Class 2 NICs due will still be calculated based on the number of weeks of self employment in the year, but will be determined when the individual completes their self assessment return.

It will therefore be paid alongside their income tax and Class 4 NICs. For those who wish to spread the cost of their Class 2 NICs, HMRC will retain a facility for them to make regular payments throughout the year.

Those with profits below the stated threshold no longer have to apply in advance for an exception from paying Class 2 NICs. Instead they will have the option to pay Class 2 NICs voluntarily at the end of the year so that they may protect their benefit rights.

The Government has announced that Class 2 NICs will be abolished in this Parliament and it will reform Class 4 NICs to include a contributory benefit test.

 

Tax Bill shutterstock_125059412

MINIMISING THE NIC BILL

We can work with you on a range of ideas for saving employer and/or employee NICs.

Strategies you may also want to consider:

  • Shareholder dividends instead of salary/bonus
  • Increasing the amount the employer contracts to contribute to company pension schemes.
  • Share incentive plans (shares bought out of pre-tax and pre-NIC income – this is a specialist area. Please get in touch for advice).
  • Salary sacrifice arrangements in respect of tax-free benefits in kind, such as the provision of childcare.

For further advice on national insurance contributions, please contact us. We have expertise in all areas of running a business and would be delighted to assist you.

 

 

 

Universal Credit – know the rules

Universal Credit – a word for warning for anyone who runs an Owner Managed Business

By: Anne Wilson

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Anyone who runs an Owner Managed Business (OMB) and is currently claiming either child tax credits or working tax credits, will have to master the complexities of claims to universal credit which will replace various welfare benefits for claimants who are employed, self-employed or unemployed. Universal credit will start for some claimants in 2016 but will be rolled out to all claimants by 2019.  Claimants may be able to elect to continue with tax credits until 2019 if that is more beneficial.

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A guide to Universal Credit for the self-employed can be found at

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https://www.moneyadviceservice.org.uk/en/articles/universal-credit-for-the-self-employed

The recent announcement about the new digital tax account and the ability for the self-employed to link their accounts package into the digital tax account is obviously intended to dovetail with the rules concerning universal credit and the self-employed.  However this assumes that the self-employed claimant can afford both online access and accounts software, which seems unlikely if their income is so low that they are able to claim universal credit.

The purpose of the article is not to take a claimant through the various stages of a claim but to highlight some of the major differences compared with the current system.  Given the complexity and the need to make monthly claims it would not be surprising if the number of self–employed claimants reduces dramatically despite assertions that the impact of universal credit will be neutral.

 

Current rules

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  • Claims to benefit are made annually and follow the tax year and so it is only necessary for the claimant to transfer the details from their tax return to their benefit claim.
  • The claimant may carry forward surplus tax losses to the following benefit claim period.
  • The net taxable result is the same figure as used in the benefit claim.
  • Claimants trading through a company are assessed to benefit entitlement on the income they draw from the company as salary and dividend and not on the company’s trading results.
  • Capital is not means tested.

 

Universal credit rules

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  • Claimed by reference to a monthly assessment period on a cash-in cash-out basis.
  • No relief is given for business expenditure that is incurred “unreasonably” this is not defined in legislation!
  • Relief for interest on a business loan is restricted to £41 in the assessment period.
  • There is no deduction for expenditure on the purchase of a car but a fixed deduction is allowed for mileage.
  • No relief is given for expenditure on non-depreciating assets e.g. property.
  • Relief for carry forward of business losses is limited.
  • Income in excess of the threshold for a claim will be carried forward to later period to restrict future claims to benefit.
  • A minimum level of income will be assumed for claimants based on the national minimum wage and an assumed number of hours worked.
  • A claimant trading through a company in a similar way to a sole trader or partner will treated as if the income of the company is their personal income (this will prevent shareholders leaving cash in the company to increase their benefit entitlement).

 

Although 2019 seems a long way off some claimants may be affected as early as 2016 so planning ahead is advisable and keep a look for further guidance as matters develop.

 

 

 

Payroll Update from Lisa Kennery

Payroll Update from: Lisa Kennery

Commission and Holiday Pay – a Decision

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The employment tribunal in Leicester has handed down its long-awaited decision in Lock v British Gas.

Daniel Barnett’s employment law bulletin summarises: Mr Lock was a salesman on a basic salary with variable commission paid in arrears. Mr Lock’s commission depended not on the time worked, but the outcome of that work, i.e. sales achieved. Mr Lock could not earn commission whilst on leave, and therefore would lose income by taking it. He brought a claim for his ‘lost’ holiday pay after taking leave in December 2011 to January 2012. Following the ECJ’s decision last year, the employment tribunal has held that Mr Lock’s holiday pay should include an element for his commission. It has done so by inserting new words into regulation 16(3) of the Working Time Regulations 1998 as follows:- “(e) as if, in the case of the entitlement under regulation 13, a worker with normal working hours whose remuneration includes commission or similar payment shall be deemed to have remuneration which varies with the amount of work done for the purpose of section 221.” This will impact on future holiday pay entitlement. The impact on back-claims is reduced by the two year cap on backdated claims which takes effect on 1 July 2015

Abolition of employer National Insurance contributions for under 21’s

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If you employ anyone under 21 years old you will no longer have to pay Class 1 secondary National Insurance contributions on earnings up to the new Upper Secondary Threshold (UST) for those employees.  This comes into effect from 6 April 2015 so be prepared to change the NI Category letters of those employees to ensure you’re paying the correct amount of NI contributions.The Abolition of employer National insurance contributions for under 21’s section of GOV.UK has been updated and now includes more detailed guidance for employers, plus detail on the new category letters and rates.

The New Marriage Allowance

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Registration for the new Marriage Allowance for married couples and those in civil partnerships is now open.

The government has opened registration for the new Marriage Allowance, a tax break for married couples, helping them save up to £212 a year.

Applying online is straightforward. Couples can register their interest to receive the Allowance now at gov.uk/marriageallowance.

From 6 April 2015, more than 4 million married couples and 15,000 civil partnerships will be eligible for the tax break.

The Allowance means a spouse or civil partner who doesn’t pay tax – therefore is not earning at all or is earning below the basic rate threshold (£10,600) – can transfer up to £1,060 of their personal tax-free allowance to a spouse or civil partner – as long as the recipient of the transfer doesn’t pay more than the basic rate of income tax.

From April, HMRC will contact those who have already registered for the Marriage Allowance to apply. People can register at any point in the tax year and still receive the full benefit of the allowance.

Applying online is simple. One person in a couple will apply online to transfer the allowance to their spouse or civil partner, and HMRC will tell the recipient about the change to their Pay As You Earn (PAYE) tax code.

 

 

Abolition of NI for under 21’s

From: Lisa Kennery

Abolition of NI for under 21’s

HMRC have published a developer brief and some calculation examples regarding the abolition of National Insurance contributions for under 21s, which takes effect from 6th April 2015.

Abolition of employers National Insurance contributions for the under 21s

20130926 HMRC logo PF-hmrc-logo_1379417f

Who is likely to be affected?

Employers with employees under the age of 21.

General description of the measure

From 6 April 2015 every employer with employees under the age of 21 will no longer be required to pay Class 1 secondary National Insurance contributions (NICs) on earnings up to the upper earning limit (UEL), for those employees.

Policy objective

The removal of the requirement for employers to pay Class 1 secondary NICs aims to encourage them to employ individuals under the age of 21.

Background to the measure

The abolition of employer Class 1 secondary NICs for employees under the age of 21 earning up to the UEL complements other government policies that seek to encourage youth employment and boost economic development.

Operative date

This measure will take effect from 6 April 2015.

Current law

Section 6(1) of the Social Security Contributions and Benefits Act and the Northern Ireland equivalent makes employers liable to Class 1 secondary NICs on all earnings paid to employees over the age of 16 provided the earnings exceed the secondary threshold which is currently £153 per week.

Proposed revisions

Under proposals and subject to earnings up to the UEL, employers who employ or engage employees under the age of 21 at or after 6 April 2015 will not be required to pay employer NICs on the earnings they pay to those employees. The UEL in 2015-16 is expected to be £813 per week (annual equivalent £42,285).

Summary of impacts

This table represents the Government’s current understanding of the impact of this measure.

Exchequer impact (£m) 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
nil nil -465 -495 -520 -530
These figures are set out in Table 2.1 of the Autumn Statement and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside the Autumn Statement.
Economic impact The measure will abolish employer NICs for employees under the age of 21 earning up to NICs UEL in any pay period.  Reducing the fiscal burden of employer NICs will support youth employment.  The overall economic impact of this measure will depend on aggregate labour demand and the performance of the wider economy.
Impact on individuals and households The employer NICs liability for nearly 1.5 million employees aged between 16 and 20 will be eliminated.  While there are no direct impacts on individuals and households, one of the goals of the measure is to support youth employment and thereby benefit individuals and households, especially those in lower income groups and areas particularly affected by youth unemployment.
Equalities impacts The policy discriminates in favour of those aged under 21 in order to improve their prospects on the employment market. There is a strong policy rationale for focusing help on reducing youth unemployment, and this measure aims to help those at the youngest end of the employment scale where unemployment levels are at their most acute. Accordingly, the scope of the measure represents a proportionate response to the issue of youth unemployment.
Impact on business including civil society organisations There will be some additional burdens on employers to update their systems so the correct NIC letter is applied to employees who are under 21. The measure is expected to directly affect around 340,000 employers. In the majority of cases payroll software will be able to implement the exemption automatically. The ongoing administration costs relate to employers who may need to update their systems manually. The ongoing cost is estimated to average just under £5 per eligible employee (totalling £700,000 across affected businesses).Anticipated one-off costs relate to training and familiarisation, given this a relatively straightforward change it is assumed to require around 30 minutes of preparation per employer already employing under 21 year olds and a smaller time period for all other employers. In total, HMRC anticipates one-off costs across employers of around £7.5 million.

Cost Time Period
Compliance Cost
One-Off Costs £7.5m N/A
Average Annual Costs £0.7m 5
Total Costs (PV) £11m N/A
Compliance Benefits N/A N/A
One-off Benefit N/A N/A
Average Annual Benefit N/A N/A
Total Benefit (PV) N/A N/A
Net Compliance Benefit (NPV) -£11m 5
Impact on Administrative Burden (included in Net Compliance Benefit)
Increase Decrease Net Impact
£0.7m £0 £0.7m

Monitoring and evaluation

This policy will be kept under review through communication with affected taxpayer groups.

HMRC explain that the brief and examples have been issued:

“to provide an overview of how the calculations will work and describe how to deal with certain situations in the payroll. Therefore to aid clarity the calculation method does not show all the ste

ps used in the NI Guidance for Software Developers specification. An updated version of the NI Guidance for Software Developers specification with detailed calculation examples and test data is planned for September 2014.”

 

Claim up to £2,000 – we can help

Claim up to £2,000 Employment Allowance – Have you claimed yet?

We can help.

From: Lisa Kennery

‘Don’t worry, even if we do not currently process your payroll, we can help, contact our team in The Payroll Department

Payroll

On 2 June HMRC issued the following reminder to employers:

There is still time to claim your Employment Allowance through your payroll.

From 6th April virtually all employers (businesses and charities) have been able to claim the Employment Allowance, which enables up to £2,000 per year off employers Class 1 NICs to be deducted from the money you pay to HMRC.

Many employers have already claimed and this is easy to do through your payroll or HMRC’s Basic PAYE Tool.

If you haven’t claimed your Employment Allowance yet, you can do this now.

All you need to do is go to  https://www.gov.uk/employment-allowance to check your eligibility and then claim through your payroll. This is likely to be ticking a box, or something similar depending on your payroll software.

If you make payments to HMRC monthly, you will have already had the opportunity to make an Employment Allowance NICs deduction from your payments to HMRC.

If you pay HMRC quarterly, before your next payment due on 19th or 22nd July, make sure you have claimed your Employment Allowance, so you can make a deduction to the payment you make to HMRC.

You can claim the Employment Allowance after the start of the tax year as long as your business or charity has employer Class 1 NICs liabilities and is eligible to claim the Employment Allowance. For example, if you make your claim in June, your Employment Allowance deduction against your year to date Class 1 NICs liability will be your employer Class 1 NICs liability to date (up to the £2,000 annual maximum) as shown on your last Full Payment Submission.

You will be able to see how much Employment Allowance you have used in “View PAYE Liabilities and Payment” in HMRC’s online service.

You check your eligibility and get more information at https://www.gov.uk/employment-allowance

Or contact Lisa Kennery at Pierce who will guide you through the process.