Difference between revisions of "How do I claim employment allowance?"
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== Summary == | == Summary == | ||
| − | If you are eligible for Employment Allowance you can reduce the amount of Employer Class 1 NICs due. | + | If you are eligible for Employment Allowance you can reduce the amount of Employer Class 1 NICs due by up to £4000 for the tax year 2021-2022. |
| − | {{Note|text=Please click [https://www.gov.uk/claim-employment-allowance here] to check the allowance in the current tax year and to see if you are eligible to claim the allowance. | + | {{Note|text=Please click [https://www.gov.uk/claim-employment-allowance here] to check the allowance in the current tax year and to see if you are eligible to claim the allowance. Please bear in mind there are various rules concerning eligibility including the thresholds for De Minimis state aid, and it is your responsibility to understand and adhere to the rules and regulations.}} |
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== More Information == | == More Information == | ||
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=== If you can claim === | === If you can claim === | ||
| − | + | At the end of each tax month you should submit an [[How do I close a payroll period?#Employer Payment Summary (EPS)|'''E'''mployer '''P'''ayment '''S'''ummary (EPS)]] | |
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| + | * Go to {{Menu|{{PR}}|Monthly Payroll Routines|Employer Payment Summary|View or Submit an EPS}}. | ||
| + | * Ensure the {{DataPrompt|Claim employment allowance?}} drop down is set to {{DataValue|Yes}}. | ||
| + | * Employers are also required to state whether or not they provide goods or services to certain markets as part of the submission. | ||
| + | * In the {{DataPrompt|De minimis state aid}} box: | ||
| + | ** At {{DataPrompt|Agriculture:}}, choose {{DataValue|Yes}} if the business provides goods or services to the agricultural market. | ||
| + | ** At {{DataPrompt|Fisheries and aquaculture:}}, choose {{DataValue|Yes}} if the business provides goods or services to the fisheries and aquacultural market. | ||
| + | ** At {{DataPrompt|Road transport:}}, choose {{DataValue|Yes}} if the business provides goods or services to the road transport market. | ||
| + | ** At {{DataPrompt|Industrial:}}, choose {{DataValue|Yes}} if the business provides goods or services to the industrial market. | ||
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{{Note|text=The Employer '''N'''ational '''I'''nsurance '''C'''ontribution total will be reduced by the allowance until the full allowance has been used. This may result in the allowance being spread over the course of multiple periods at the start of the tax year.}} | {{Note|text=The Employer '''N'''ational '''I'''nsurance '''C'''ontribution total will be reduced by the allowance until the full allowance has been used. This may result in the allowance being spread over the course of multiple periods at the start of the tax year.}} | ||
{{Warning|text=The amount of ''NIC's'' due, less the allowance is shown on the [[How do I close a payroll period?#Employer Payment Summary (EPS)|'''E'''mployer '''P'''ayment '''S'''ummary (EPS)]] and currently not on the P32 print out. You must submit an ''EPS'' at the end of each Tax Month to ensure HMRC are aware you are claiming your allowance.}} | {{Warning|text=The amount of ''NIC's'' due, less the allowance is shown on the [[How do I close a payroll period?#Employer Payment Summary (EPS)|'''E'''mployer '''P'''ayment '''S'''ummary (EPS)]] and currently not on the P32 print out. You must submit an ''EPS'' at the end of each Tax Month to ensure HMRC are aware you are claiming your allowance.}} | ||
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=== If you cannot claim === | === If you cannot claim === | ||
| − | If you are not entitled to claim Employment Allowance | + | If you are not entitled to claim Employment Allowance: |
| − | + | * While sending your monthly [[How do I close a payroll period?#Submitting the Employer Payment Summary (EPS)|Employer Payment Summary (EPS)]] choose {{DataValue|No}} at the {{DataPrompt|Claim employment allowance?}} prompt. | |
| − | + | * Having done so your breakdown and summary figures will be recalculated so that they no longer include Employment Allowance. | |
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== See also == | == See also == | ||
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* [https://www.gov.uk/claim-employment-allowance Employment Allowance] | * [https://www.gov.uk/claim-employment-allowance Employment Allowance] | ||
| − | {{KB_Tags|payroll, params, parameters, settings, eps | + | {{KB_Tags|payroll, params, parameters, settings, eps, employer payment summary, nic, claim, reclaim, re claim, re-claim, employment, allowance, wages journal, state aid, de minimis}} |
{{FAQ}}{{How}}{{KB_PR}} | {{FAQ}}{{How}}{{KB_PR}} | ||
Latest revision as of 06:28, 12 March 2021
Summary
If you are eligible for Employment Allowance you can reduce the amount of Employer Class 1 NICs due by up to £4000 for the tax year 2021-2022.
 | Please click here to check the allowance in the current tax year and to see if you are eligible to claim the allowance. Please bear in mind there are various rules concerning eligibility including the thresholds for De Minimis state aid, and it is your responsibility to understand and adhere to the rules and regulations. |
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 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
At the end of each tax month you should submit an Employer Payment Summary (EPS)
- Go to " Payroll Monthly Payroll Routines Employer Payment Summary View or Submit an EPS".
- Ensure the "Claim employment allowance?" drop down is set to 'Yes'.
- Employers are also required to state whether or not they provide goods or services to certain markets as part of the submission.
- In the "De minimis state aid" box:
- At "Agriculture:", choose 'Yes' if the business provides goods or services to the agricultural market.
- At "Fisheries and aquaculture:", choose 'Yes' if the business provides goods or services to the fisheries and aquacultural market.
- At "Road transport:", choose 'Yes' if the business provides goods or services to the road transport market.
- At "Industrial:", choose 'Yes' if the business provides goods or services to the industrial market.
| The Employer National Insurance Contribution total will be reduced by the allowance until the full allowance has been used. This may result in the allowance being spread over the course of multiple periods at the start of the tax year. |
 | The amount of NIC's due, less the allowance is shown on the Employer Payment Summary (EPS) and currently not on the P32 print out. You must submit an EPS at the end of each Tax Month to ensure HMRC are aware you are claiming your allowance. |
If you cannot claim
If you are not entitled to claim Employment Allowance:
- While sending your monthly Employer Payment Summary (EPS) choose 'No' at the "Claim employment allowance?" prompt.
- Having done so your breakdown and summary figures will be recalculated so that they no longer include Employment Allowance.
See also
