Sutton business advisers and accountants Harmer Slater has reminded local businesses about the Employment Allowance which 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 policy paper confirming that from 6 April 2016 eligibility to claim the Employment Allowance will be removed from limited companies with a single director, and no other employees. This measure could affect up to 150,000 limited companies and has been put in place to ensure that companies with a single director and no employees do not benefit from an allowance designed to help small businesses take on additional staff.
Harmer Slater is an independent firm of Chartered Accountants and business advisers located in Sutton, close to central London.
They have experience in dealing with listed and unlisted businesses operating across a range of industries in the UK and overseas.
They offer business advice and a comprehensive range of accounting, audit, assurance and tax services tailored to meet the individual needs of our clients.
19 Cedar Road
T: 020 8652 2700
F: 020 8652 2719