“The Employment Allowance is welcomed wholeheartedly by small employers, but it does leave us with a most unfair and unreasonable state of affairs for domestic payrolls: disabled people who employ carers or personal assistants are expected to pay full Employer National Insurance contributions, but businesses large and small get £2,000 off. The same applies for nannies, who are almost exclusively employed specifically so that skilled parents can return to the workforce and generate business growth. The situation is made even worse with the abolition of the Percentage Threshold Scheme. From 6th April these same employers are expected to meet the cost of up to £2,451 of SSP paid out. Unfortunately, this type of employer has no say in HMRC’s decisions-making. David is up against Goliath, and really doesn’t stand a chance. It looks like HMRC will not rethink until a case hits the headlines.”
The CIPP would urge the government to reconsider extending this allowance to all but the public sector employers to ensure fairness for all.
Employment Allowance calculator
7 March 2014
The government has introduced an online calculator for employers to see the effect the new Employment Allowance could have on their National Insurance Contributions bill.
The Employment Allowance allows businesses and charities to reduce their Class 1 Employer National Insurance Contributions bill by up to £2000 each year.
This calculator allows you to see the effect of the Employment Allowance in April 2014 on:
Taking on a new employee: You can use the tool to see the effect on your employer National Insurance Contributions of employing one additional employee Your employer National Insurance Contributions bill for all employees - You can add a number of employees and their salaries to see the overall effect on your payroll.
Find out more about eligibility and claiming the Employment Allowance .
The National Insurance Contributions (NICs) Employment Allowance
14 March 2014
Last month the government published Employment Allowance key facts and detailed guidance to assist employers. As expected the guidance has raised some questions.
Schools We were asked a question in respect of eligibility of schools and HMRC confirmed that generally, publicly funded schools – particularly those which are funded and controlled by local education authorities – will not be eligible for the Employment Allowance. However, if a publicly funded school has charitable status (as, for example, academies do) it will be entitled to the Employment Allowance. Independent schools will be entitled to receive the allowance on the basis that they are trading businesses (as well as, frequently, charities). Unused balance The guidance states that if a business with more than one PAYE scheme doesn't use the full £2,000 allowance during the year on their nominated PAYE scheme then they can apply to HMRC at the end of the tax year for a refund of any unused balance. They can only do this if
CIPP Policy News Journal
08/04/2015, Page 217 of 521
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