From April 2016 the National Insurance contributions (NICs) employment allowance increases from £2,000 to £3,000 a year.  The increase will mean that businesses will be able to employ four workers full time on the new National Living Wage without paying any NIC.

To ensure that the allowance is focused on businesses and charities that support employment, from April 2016, companies where the director is the sole employee will no longer be able to claim.

There’s no change to the way in which the allowance is claimed – a one-off notification to HMRC via your FPS and then deducted from your employers NIC contributions until you reach the £3000 threshold.