In the government Autumn statement last year, it was announced that from 6 April 2014, employers would be refunded the first £2,000 of their employers’ NIC (Class 1) each tax year.
More on this has now been announced…
You can only claim the £2,000 employment allowance against one PAYE scheme even if your business has multiple schemes, Similar connected companies or those under common control will only be eligible for one allowance between them.
Some good news is that the allowance is all upfront and can be claimed through your payroll software*
There are also employers who are excluded, they include employers who are a public authority; including local, district, town and parish councils; and employers who carry out functions where more than 50% of work is in, or for the public sector.
Some example of those affected is GP Services, NHS Services, refuse collection services or managing housing stock for a local council.
For example, If you are a qualifying employer –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.
*Contact your software provider.
For more information: https://www.gov.uk/employment-allowance-up-to-2000-off-your-class-1-nics#ee