Can you claim the Employment Allowance from 6 April 2014?

From 6 April 2014 you may be able to claim the Employment Allowance to reduce your Employer Class 1 NI contributions by up to £2,000 every year.

Who can claim?
Almost all businesses, charities or community amateur sports clubs, which pay Employer Class 1 national contributions on employee or director earnings, will be able to claim the Employment Allowance.
Where a company or charity is part of a group only one company or one charity can claim the allowance.
Where a business operates more than one PAYE scheme the Allowance can only be claimed against one scheme.

How do you claim your Employment Allowance?
You can claim the Employment Allowance via your payroll software by reducing the Employer Class 1 NIC due by an equal amount of Employment Allowance up to £2,000 per year.

Example
If your Employer Class 1 NIC is £750 per month you can claim £750 in April, £750 in May and £500 in June.

Once the claim is made it is automatically carried forward each year by HMRC.

HM Revenue & Customs estimate that 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 2014-2015.

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