Find out how the new employment allowance EA could cut your NI bill by £2000
Yes, there’s usually no such thing as free lunch but in plain black and white, HMRC has published a guide on how and when you can claim it: www.gov.uk/claim-employment-allowance.
Who can claim £2000 new employment allowance EA
Most companies can claim the EA even where their only employee is a Director.
However, if your business is caught by IR35 (i.e it’s classed as a personal service company) you can’t claim the EA in respect of deemed PAYE income. Other excluded employers are government bodies, some businesses which supply services to the government and employers of domestic workers.
Claim one EA allowance only
You can’t double up on the EA by paying wages through two businesses that are controlled by the same person. Only one of the businesses will be able to claim the allowance.
How to claim new employment allowance EA National Insurance
After you have sent your RTI full payment submission for payrolls run since 5 April 2014 you can file an employer payment summary (EPS) specifically to claim the EA.
Most payroll software will show a yes/no indicator asking if you want to, i.e. are you entitled to, claim the allowance. You must select YES where your payroll software asks if EA applies, if you use an agency or outsource your payroll ensure they have done this for you.
Omni Chartered Accountants can help your business money
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And that, as they say, is the way to do it!
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