The Employment Allowance was launched in April 2014 for all eligible businesses and charities. The allowance is offset against the employer’s Class 1 secondary National Insurance Contributions (NICs) and can be claimed through the regular payroll processes.
The Employment Allowance will rise to £3,000 (from £2,000) in April of this year. This means that businesses will be able to employ 4 people earning the new National Living Wage without having to pay any employer’s Class 1 secondary NICs. The move will also remove some 90,000 employers from paying NICs.
HMRC has also recently published a…
