The Employment Allowance allows employers to reduce the amount of employer’s Class 1 National Insurance contributions (NICs) payable by up to £3,000 for each tax year beginning with 2014-15. Most employers can claim the relief although there are some notable exceptions which include businesses doing more than half their work in the public sector or, service companies with only deemed payments of employment income under ‘IR35 rules’. There are also some complex rules for employers with multiple payrolls or groups of companies.
The Employment Allowance can be claimed at any time during the tax year via your payroll software.
Even if you have ‘missed the boat’, all is not lost. You can make a claim up to 4 years after the end of the tax year to which the Employment Allowance applies. For example, a valid claim for the Employment Allowance for the tax year 2014-15 must be made by the 5 April 2019, although clearly it makes sense to make the claim as soon as possible
Drummond Laurie can help you with this, for more information please contact Gillian Niven, firstname.lastname@example.org or 01324 441280