Most employers who pay Class 1 National Insurance contributions on their employees earnings are able to take advantage of HMRC’s new employment allowance – has your business already claimed?
From 6 April 2014 the employers can reduce the amount of National Insurance contributions that they pay for their employees by up to £2,000, this is called the ‘Employment Allowance’.
HMRC estimate that 1.25 million businesses and charities will benefit from the new employment allowance, however, according to a poll, conducted by accounting firm Sage UK, one in ten small business owners have not yet applied for the allowance!
The majority of small firm bosses polled (89%) said they have claimed money back through the scheme. But, 9% said they had not checked if they were eligible and a further 2% admitted they had not made any effort to claim.
To make sure that you are making the most of the allowance, firstly check your eligibility here: https://www.gov.uk/employment-allowance and then you can simply claim the allowance via your payroll software.
For more information on what the employer allowance means for your business please click here, or if you would like to discuss this further with one of our payroll experts, please contact Rawlinsons Payroll and HR on 01733 865265.