Employment Allowance

by Aspiring Training on December 17, 2015 No comments

Almost all private sector employers can claim the annual employment allowance worth up to £2,000, to set against employers NIC in the tax year 2015/2016. Not all employers are eligible for the allowance and eligibility can be checked on the HMRC website. This allowance is not available for:

  • Anyone who employed someone as a nanny or for household or domestic duties
  • Employers already claiming through a connected business or charity
  • Public authorities which are not charities
  • Employers who carry out functions either wholly or mainly of a public nature, unless they have charitable status
  • Service companies cannot claim in respect of deemed payments of salary

The employment allowance will increase to £3,000 for 2016/17. For very small companies, where the owner is the only employee, they will not be able to claim the allowance from 2016/17 onwards.

For more information go to: www.hmrc.gov.uk/nicsemploymentallowance

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