The Government’s £2k ’employment allowance’ gift to employers

From April this year, any business, charity or community amateur sports club can claim an annual “employment allowance” of up to £2,000 to offset against Employers’ NI Contributions. You won’t be able to claim the allowance if you employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, etc. Public authorities are also excluded from the scheme.

You can indicate your intention to claim the allowance through a simple “yes / no” facility to be added to payroll software and the Real Time Information system. You can then offset the allowance against each monthly NI payment until the allowance is used up or the tax year ends.

The allowance can only be claimed once, regardless of how many PAYE schemes you operate. For more details visit https://www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics or speak to Thomson Cooper’s payroll expert Fiona Haro on 01383 628800.

Rest assured however that balance in the universe will be restored. Find out how next week when we explore how the government has withdrawn an existing financial support for employers.

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