National Insurance £2000 up for grabs

NI TaxFind 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

Unlike some other businesses, we are here to save you money – in the long run, our ethos is simple: if we help increase your profitability, we retain business and encourage referrals.

And that, as they say, is the way to do it!

Call us today to find out more on 01902 837408, request a free call back from this site or click here to make an online enquiry.


HMRC eases stance on late PAYE filings

Tax and AccountancyUK businesses with less than 50 employees will now be allowed three days’ leeway by HMRC before being penalised for late filing of PAYE submissions.

HM Revenue & Customs has confirmed that late payment penalties will carry on being reviewed on a “risk-assessed” basis as opposed to being issued automatically.

No change to PAYE filing deadlines

HMRC have confirmed that there will be no change to the actual filing deadlines, which usually means that businesses need to file them actually on or before each payment due date.

HMRC will be closing close to 15,000 PAYE schemes in March 2015 in a bid to prevent unnecessary penalties being issued, for companies that have not filed a PAYE report since April 2013, and as a result, look to appear to have ceased trading.

These company schemes will be written to, advising them about the planned closure and what they should do if they are – or should be – operating PAYE.

Employers with less than 50 employees are also reminded that late filing PAYE penalties will apply from 6 March.

A discussion document has been published by HMRC in order to gauge views by the deadline of 11th May 2015. Suggestions concerning potential improvements to the way in which penalties apply for PAYE payment failure or to meet deadlines for registration or returns will be considered.

How to run your PAYE smoothly and avoid penalties

Of course, it is not always easy running a business and PAYE is something that a good accountant like Omni Chartered Accountants can help you with.

Seeking help with your PAYE affairs may work out more cost-effectively than you may think, especially when you consider the time saving and potential problems that your company could face if deadlines and payments are not made by the dates as set out by HMRC.

For more information, contact us now by clicking here or request a free of charge call back from our website by clicking on the link at the top of this page.