How do I claim employment allowance?
Contents
Summary
If you are eligible for Employment Allowance you can reduce the amount of Employer Class 1 NICs due.
 | Please click here to check the allowance in the current tax year and to see if you are eligible to claim the allowance. |
 | The rules governing which companies are eligible to claim employment allowance have changes for the tax year staring 6th April 2020. Please ensure you check to see if you are still eligible and if not follow the steps to amend your system. |
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
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 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. |
De Minimis State Aid
As of the 2020 payroll year, employers are required to state whether or not they provide goods or services to certain markets. To state which markets the business supplies:
- Go to " Payroll Monthly Payroll Routines Employer Payment Summary View or Submit a EPS".
- Go to the "Employment Allowance" tab.
- In the "De minimis state aid" box:
- At "Agriculture:", choose 'Yes' if the business provides goods or services to the agricultural market, otherwise choose 'No'.
- At "Fisheries and aquaculture:", choose 'Yes' if the business provides goods or services to the fisheries and aquacultural market, otherwise choose 'No'.
- At "Road transport:", choose 'Yes' if the business provides goods or services to the road transport market, otherwise choose 'No'.
- At "Industrial:", choose 'Yes' if the business provides goods or services to the industrial market, otherwise choose 'No'.
If you cannot claim
If you are not entitled to claim Employment Allowance then you will need to switch off this setting in Platinum. You do this while sending your monthly Employer Payment Summary (EPS):
- Go to the "Employment Allowance" tab.
- At "Claim employment allowance?", choose 'No'.
After you do this, the figures will be recalculated so that they no longer include any Employment Allowance.
See also
