£2,000 NI Allowance available from 6th April 2014


The Employment Allowance is available from 6 April 2014. If you are eligible you can reduce your employer Class 1 NICs by up to £2,000 each tax year.

You can claim the Employment Allowance if you are a business or charity that pays employer Class 1 NICs on your employees’ or directors’ earnings. However not all businesses can claim the Employment Allowance, see the link below for excluded businesses.

When you make your claim, you must reduce your employer Class 1 NICs payment by an amount of Employment Allowance equal to your employer Class 1 NICs due, but not more than £2,000 per year.

For example, if your employer Class 1 NICs are £1,200 each month, in April your Employment Allowance used will be £1,200 and in May £800, as the maximum is capped at £2,000.

If you would like help with this you can use our payroll department who have the 2014 payroll software.

For further details:
https://www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics

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