News
£2,000 national insurance saving coming soon
06 March 2014
Employers are reminded to make sure they do not miss out on a £2,000 cut in their employment costs from 6 April 2014.
The new Employment Allowance will see up to 1.25 million employers – businesses, charities and Community Amateur Sports Clubs – benefit from the annual reduction in their Class 1 secondary national insurance contributions (NICs).
More than 90 per cent of those benefiting will be smaller businesses and around 450,000 firms will be taken out of paying Class 1 secondary NICs altogether.
Employers will be able to indicate that they wish to claim the allowance through standard payroll software or HM Revenue & Customs’ Basic PAYE Tools. They will then need to reduce their Class 1 NICs payment by an amount equivalent to the amount due, up to the £2,000 limit.
For example, if the employer’s Class 1 NICs are £1,200 each month, in April the Employment Allowance used will be £1,200 and in May it will be £800, making £2,000 in total.
There are some exemptions from the scheme, including anyone who employs another person for personal, domestic or household work, such as a nanny, gardener, au pair or care support worker.
Case Studies
-
A taste for growth, a thirst for knowledge
-
A shared passion for architecture and a head for numbers
-
Cut above the rest in personal management style
-
Taxing demands with old school charm
-
Customer care is top of the list for packaging business
-
Sometimes a business does exactly as it says on the tin
-
Smiles all round for dental practice
-
A modern approach required for music moguls
-
Child's play with proactive accounts management