NIC Employer Allowance Increasing

24/02/2016 Filed under Accounts, Payroll

If you are an eligible employer, you can reduce the amount of National Insurance contributions (NICs) you pay by up to £2000 a year through the Employer Allowance.

 

From April 2016, subject to Parliamentary approval, the maximum value of the allowance will rise to £3000 per year. This means that your employer National Insurance contributions could be reduced by a further £1000 per year.

 

If you already claim the allowance and continue to be eligible to claim, your claim will be ongoing and you just need to continue making the appropriate deductions from the amount of Class 1 secondary National Insurance contributions you would have paid to HMRC.

 

However, from 6th April 2016, if you’re the only employee in a company, and also the director, subject to Parliamentary approval, your company will no longer be eligible for the NICs Employment Allowance.

 

To find out what effect these changes may have on your business, get in touch with our Payroll department via payroll@summ.it