Don’t forget your National Insurance £2,000 employment allowance from April 2014

Posted 2014 by admin

The annual employment allowance of £2,000 for most businesses and charities to be offset against their employer Class 1 secondary NICs bill starts this month.

You will need to claim the Employment Allowance through your software, usually via a tick box, which then submits the claim to HMRC  The deduction will then be shown on your P32 for the relevant months.

If your employers NIC liability is greater than £2,000 this month don’t forget to reduce your payment to HMRC by £2,000.

If your liability doesn’t exceed £2,000 this month, you may take a deduction to the extent of your liability this month and next month until you’ve taken all of your £2,000 allowance.


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