From 6th April 2014 most employers will be able to claim the new employer allowance. The allowance is £2,000 per business but some employers that are not businesses are excluded i.e. those that have domestic employees.
The allowance will be claimed just like Statutory Sick Pay was for small businesses, i.e. by ticking a box on your payroll submissions.
The way it works it that the first £2,000 of Employer’s National Insurance that the business is due to pay in the tax year will be offset against their NIC credit i.e. not be due for payment to HMRC.
If you do your own payroll then make sure you tick the box.
If we do your payroll then we will tick the box for you.
Remember that under RTI all payroll calculations need to be adviced to HMRC on or before payday and there will be penalties for getting this wrong after 6th April 2014.
If you would like any assistance with your payroll then we are happy to do monthly payroll calculations for small businesses – under 10 employees.