The 6 April sees the start of the new ‘employment allowance'. This is a reduction of up to £2000 off the employers’ national insurance contribution bill for every business that has employees and pays secondary national insurance contributions.
The allowance must be claimed and this will be done via your normal payroll software. The effect is to reduce the business’s employer Class I national insurance contributions by £2000. If your monthly employer contributions bill is less than £2000 then the contributions will reduce to nil until the allowance is used up.
For further information or to discuss your payroll taxes, please contact Clare Munro or Phil Moss - 020 7490 7766.