HMRC are offering a no strings attached £2,000 “employment allowance” from April 6th
The employment allowance is available to every business, charity or CASC (Community Amateur Sports Club) to reduce your liability for employers Class 1 secondary National Insurance Contributions (NICs).
You can claim the allowance as part of the normal payroll process through RTI.
There are some exclusions, so employers of domestic workers (such as nannies) and firms with greater than 50% of their business in the public sector can’t take advantage.
The Government is promoting this measure primarily as a mechanism to encourage growth. Their claim is that new businesses considering taking on their first employee could take on somebody earning, say £22,000, without having to pay employers NICs.
As always how you use this allowance depends very much on your or your company’s specific circumstances. So if you want to discuss the best approach to take simply give us a call on 01384 235549 or email firstname.lastname@example.org today to arrange a no-obligation discussion.
Lewis Smith & Co. – Accountants for Pensnett businesses