As an employer you could potentially reduce your National Insurance bill by £3,000 each year. This means employers with a liability below £3,000 would have no liability to pay and employers with a liability over £3,000 would have a reduced National Insurance bill. Watch our video to learn more.
This allowance applies only to the Employers National Insurance bill. You do still have to pay the Employees National Insurance.
For example, if your contribution in one month is £750, you would pay nothing, and the balance carried forward would be £2,250. This cycle will continue until the allowance has been used up and then the liability must be paid in full for the rest of the year. If the balance is not used up in any year it is lost and cannot be carried forward into the following year.
Who qualifies?
Not all businesses are entitled to the employment allowance. This includes one-person companies where the sole employee is the director.
The allowance is also not available to employers who employ people for personal or domestic work such as gardeners and child minders.
How do you claim employment allowance?
If you are eligible you can just claim through your payroll software. You only need to claim for Employment allowance once. It will continue until you stop it. However, do make sure you are claiming as it is not automatic.
I hope you found this useful. If you would like to know anymore information then please get in touch.