How do I claim employment allowance?

Summary

The Employment Allowance is available from 6 April 2014. If you are eligible you can reduce your Employer Class 1 NICs by up to £3,000 each tax year.

As of 6 April 2016.

More Information

You can claim the Employment Allowance if you are a business or charity (including Community Amateur Sports Clubs) that pays employer Class 1 NICs on your employees’ or directors’ earnings.

If your company belongs to a group of companies or your charity is part of a charities structure, only one company or charity can claim the allowance. It is up to you to decide which company or charity will claim the allowance.

You can only claim the £3,000 Employment Allowance against one PAYE scheme - even if your business runs multiple schemes.

You can find more information about Employment Allowance on the HMRC website.

If you can claim

If you are entitled to claim Employment Allowance then you must send an Employer Payment Summary (EPS) each calendar month and Platinum will automatically claim the Employment Allowance when you do.

The Employer National Insurance Contribution total will be reduced by the value of £3000. If your Employer N.I.C is lower than £3000 a period it will be spread over the course of multiple periods. This will be shown on the Employer Payment Summary (EPS) and currently not on the P32 print out.

If you cannot claim

If you are not entitled to claim Employment Allowance then you will need to switch off this setting in Platinum:

1. Go to " Payroll Maintenance Options Payroll Settings Company Parameters General Company Details".
2. Change "Employment Allowance?" to 'N'.

After you do this then Platinum will no longer claim Employment Allowance in your monthly Employer Payment Summary (EPS).

See also

• How do I Close a Payroll Period?
• Employer Payment Summary (EPS)
• Employment Allowance
• How do I Post the Wages Journal?

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