Employment Allowance - Have you claimed yet?
02 June 2014
HMRC have 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