they have employer Class 1 NICs liability on other PAYE schemes, and have paid all their PAYE up to date. If they do not apply for a refund, and have an un-used balance they should apply to HMRC to use this against any forthcoming PAYE debt. “How does one apply?” is the question we asked HMRC. The reply is unfortunately inconclusive at this stage as HMRC said that the point raised is one that will not become an issue until April 2015. And as there are sure to be a range of further questions on the operation of the Employment Allowance, as we move forward they have said that they will seek to provide further Q & As where useful in due course.
CIPP comment
The Policy team will of course keep you updated with any further questions and answers as and when they arise. As we are all painfully aware, many new initiatives are up and running before issues are ever fully resolved. If you have any questions about the Employment Allowance guidance or any issues after 6 April when it comes into practice, please email policy with Employment Allowance as the subject title and we will do our best to get answers and resolutions for you.
Further information:
Key facts
Detailed guidance The Policy team also published an article with Accounting Web last month which readers may find useful.
Employment Allowance: further guidance on connected companies and eligibility
28 March 2014
One of the key questions being asked about Employment Allowance is about eligibility and we are pleased to see that HMRC has published more detailed guidance .
Earlier in the month HMRC’s Agent Blog published information saying that agents may receive enquiries from clients about the new Employment Allowance as they sent employers an email, headed ‘Get up to £2K off your NICs bill’, highlighting the introduction of the Employment Allowance with a link to the guidance. Did you or your clients receive these emails? HMRC did say when they published their original guidance in February that they would update it but kept it quite well hidden within the Agent Blog that they had actually done so. The updated guidance is well worth reading if you are in any doubt as to the eligibility of yours or your clients’ business/es. The link to the more detailed guidance is the same as the one originally published on 6 February by HMRC but contains more detail on eligibility, claiming, connected companies and connected charities, than the original guidance.
National Insurance Contributions (NICs) Employment Allowance
31 March 2014
Following Royal Assent of the NICs Act 2014, HMRC - having taken account of comments received on the draft Employment Allowance arrangements - has now published the arrangements which set out how employers may claim the Employment Allowance.
CIPP Policy News Journal
08/04/2015, Page 218 of 521
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