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CFW Chartered Accountants & Business Advisers

£2000 Employment Allowance

Posted: 10/03/14 by CFW Chartered Accountants & Business Advisers

The Government has announced further details of the Employment Allowance which is available from 6 April 2014.

Eligible employers can reduce their employer Class 1 NICs by up to £2,000 each tax year.

The Employment Allowance can be claimed by a business or charity (including Community Amateur Sports Clubs) that pays employer Class 1 NICs on their employees’ or directors’ earnings.

However there are some circumstances which may limit the availability of the allowance:

  • if a company belongs to a group of companies or a charity is part of a charities structure, only one company or charity can claim the allowance
  • the £2,000 Employment Allowance can only be claimed against one PAYE scheme, even if the business has more than one PAYE scheme.

Not all businesses can claim the Employment Allowance and the government guidance gives the following details of excluded employers:

  • employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, gardener or 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), further details available.

If you would like any guidance on claiming the allowance please do get in touch. Call 01536 713555 or email enquiries@cfwaccountants.co.uk. If you are CFW Payroll department client then this will be dealt with on your behalf!

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