From April 2014 all businesses and charities will be entitled to an annual £2,000 employment allowance against their Class 1 secondary National Insurance bill (employers NIC).

The annual employment allowance will apply per employer, regardless of how many PAYE schemes are operated.  Therefore, businesses with more than one PAYE scheme will need to choose which PAYE scheme to claim it against.

The employment allowance will be claimed by reducing the Class 1 secondary employer national insurance contributions on the Employer Payment Summary (EPS) and will be included each month until the allowance is fully claimed or the tax year ends.

Please contact us or your normal payroll provider if you are unsure whether your payroll software has been updated to incorporate this facility.

If your payroll circumstances are complicated or you would like further advice on the annual employment allowance please contact us.