From the 6th April almost every employer that pays Class 1 NIC’s on their employee’s or director’s earnings will be eligible to reduce their employer’s NI Contributions (NICs) by up to £2,000 every year.
The government predicts up to 1.25 million organisations will benefit from the new Employment Allowance and around 450,000 will not have to pay any Class 1 NIC’s at all in 2014-15.
The outcome of this cashback windfall for organisations is that it will cut up to £2,000 from their employer NICs bill – money they can now choose to how to spend elsewhere – every year.
We’ll take care of it! We are aware that David Cameron wrote to all our clients recently informing you of his government’s good news. But don’t worry, you don’t have to do anything. We will ensure your organisation receives this benefit and your employer PAYE remittance that we provide you will be adjusted accordingly on a monthly basis.
…and just remember? It is an annual allowance, so once you have used up this year’s £2,000, you will have to wait until the next tax year to receive it again.