The NICs Employment Allowance was introduced in April 2014, for the purpose of supporting businesses and charities in helping them to grow by cutting the cost of employment. Eligible employers can claim the allowance, which reduces their Employer NICs bill by up to £2,000 a year. This is an ongoing allowance. Over a million employers have benefited from the allowance since its introduction.
The government has announced that they will increase the Employment Allowance to £3,000 from April 2016. This means eligible business and charities will be able to claim a greater reduction on their employer NICs liability.
Employment Allowance is for nearly all employers that pay Class 1 National Insurance contributions (https:www.gov.uk/nationalinsurance-contributionsforemployers/) on their employees’ and directors’ earnings.
• Community Amateur Sports Clubs
From April 2016, companies where the director is the sole employee will no longer be able to claim the Employment Allowance.
Please contact us for further information on the employment allowance.