The Policy team produced a short webcast last month on the National Insurance contributions Employment Allowance which came into effect on 6 April 2014. We have updated the Q & A that accompanied the webcast.
HMRC has provided further clarification on some of the questions raised and we have also added a couple more Q & As to the collection.
Follow this news link to view the Q & A .
Employment Allowance - Have you claimed yet?
2 June 2014
HMRC have issued a reminder to employers that there is still time to claim your Employment Allowance through your payroll.
From 6th April virtually all employers (businesses and charities) have been able to claim the Employment Allowance, which enables up to £2,000 per year off employers Class 1 NICs to be deducted from the money you pay to HMRC.
Many employers have already claimed and this is easy to do through your payroll or HMRC’s Basic PAYE Tool.
If you haven’t claimed your Employment Allowance yet, you can do this now.
All you need to do is check your eligibility and then claim through your payroll. This is likely to be ticking a box, or something similar depending on your payroll software.
If you make payments to HMRC monthly, you will have already had the opportunity to make an Employment Allowance NICs deduction from your payments to HMRC.
If you pay HMRC quarterly, before your next payment due on 19th or 22nd July, make sure you have claimed your Employment Allowance, so you can make a deduction to the payment you make to HMRC. You can claim the Employment Allowance after the start of the tax year as long as your business or charity has employer Class 1 NICs liabilities and is eligible to claim the Employment Allowance. For example, if you make your claim in June, your Employment Allowance deduction against your year to date Class 1 NICs liability will be your employer Class 1 NICs liability to date (up to the £2,000 annual maximum) as shown on your last Full Payment Submission.
You will be able to see how much Employment Allowance you have used in “View PAYE Liabilities and Payment” in HMRC’s online service.
National Insurance Contributions (NICs) Employment Allowance – an update
25 July 2014
HMRC have issued an update on the claims to date and a reminder of the procedure for those employers who may not yet have claimed.
HMRC report that, since the introduction of the Employment Allowance in April this year, “over half of all eligible businesses (725,000 employers at the end of June) have benefitted from the Employment Allowance, which offers businesses and charities up to £2,000 off their employer Class 1 NICs bill every year. This has resulted in around £500 million of employer NICs relief.
CIPP Policy News Journal
08/04/2015, Page 220 of 521
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