The government have announced that some employers will benefit from an allowance on their employer’s NI contributions from this tax year. If you are eligible you can reduce your employer Class 1 NICs by up to £2,000 each tax year, you can claim the Employment Allowance if you are a business or charity that pays employer Class 1 NICs on your employees’ or directors’ earnings.
There are some exemptions –
If you employ someone for personal work, e.g Nanny, domestic services, chauffeur etc.
If you 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
- collecting debt for a government department
For further information on the allowance and exemptions, please go to the gov.uk website or alternatively you can call us on 01273 739592.