This article should be of particular interest to businesses that only recently have started to employ staff.
HMRC administers the scheme and ETL Cambridge has reproduced below the instructions to claim the allowance as posted on GOV.UK’s website.
“You can use your own 2014 to 2015 payroll software (see your software provider’s instructions), or HMRC’s Basic PAYE Tools for 2014 to 2015 to claim the Employment Allowance.
When you make your claim (using the software of your choice), 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.”
Naturally, if we look after your payroll we will take care of these formalities for you.
The following employers cannot claim the allowance, for instance if you:
• Employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, gardener, care support worker.
• Already claim the allowance through a connected company or charity.
• Are a public authority, this includes local, district, town and parish councils.
• Carry out functions either wholly or mainly of a public nature (unless you have charitable status), for example: NHS services; General Practitioner services; the managing of housing stock owned by or for a local council; providing a meals on wheels service for a local council; refuse collection for a local council; prison services; collecting debt for a government department.
If you are unsure if you are entitled to claim ETL would be happy discuss your options.
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ETL Cambridge specialises in owner managed and private equity backed companies and provide no-nonsense accounting, tax and consultancy services.
www.etl-cambridge.co.uk 01223 750235
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