Once again this year small employers will have the opportunity to claim the National Insurance allowance. This will save eligible employers up to £2,000 per year depending on how much Employers National Insurance they pay. The reason why the government has continued this allowance is to try and encourage employers to reinvest the saving they have made into new staff resource or other areas of their business. The basics of the scheme are as follows:
• Eligible businesses can claim up to £2,000 off of their employers national insurance liability each year.
• You can only claim the allowance against a single PAYE scheme. Some businesses have associated businesses and you are only allowed to claim this allowance once.
• Claims will be made either via the third party software you currently use or via the HMRC’s basic PAYE tools.
• In order to claim, companies should deduct a cumulative amount of up to £2,000 from their monthly employers NIC bill.
• If your company is caught by the IR35 legislation this scheme will not apply.
Each business will need to assess whether they will benefit from this new allowance. If you are unsure whether you qualify for this scheme, or would like help making your claim, please give us a call.
To find out more about how we can help your business in the future, please contact us for a free no obligation meeting.
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