Employment Allowance

From the 6 April 2014 you can get the Employment Allowance which could reduce your employer’s Class 1 National Insurance Contributions (NICs) by up to £2,000 every year.

Who is eligible?

Almost every employer who is a business or charity (including a Community Amateur Sports Club) that pays employer Class 1 NICs on their employee’s or director’s earnings will be eligible.

How do I apply?

If you’re eligible all you need to do is claim it using your 14-15 payroll software. This will depend on your package, but will most likely be a box you have to tick. Up to 1.25 million businesses and charities will benefit from the Employment Allowance and around 450,000 will not have to pay any Class 1 NICs at all in 2014-15.

To check your eligibility and get further information about the Employment Allowance go to www.gov.uk/employment-allowance.

Ricky Steedman