From the 6 April 2014 most employers can get the Employment Allowance which could reduce Class 1 National Insurance Contributions (NICs) by up to £2,000 every year.
Who is eligible? Almost every employer who is a business or charity (including a Community Amateur Sports Club) that pays employer Class 1 NICs on their employee’s or director’s earnings will be eligible.
How do I apply? If you’re eligible all you need to do is claim it using your 2014-15 payroll software. This will depend on your package, but will most likely be a box you have to tick.
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 2014-15.
As always, please contact us if you have any queries relating to this allowance.