National Insurance Contributions
The National Insurance Contribution (NIC) employment allowance allows employers to claim a reduction against their NIC paid across to HMRC for each tax year. The amount that can be claimed each tax year varies with the 2023/24 allowance being up to a maximum of £5,000.
To be eligible for the Employment Allowance a company must abide to guidelines set by HMRC, the company must:
- Pay national insurance contributions on employee’s salaries, with at least two employees salaries reaching the national insurance threshold.
- Have employers’ national insurance contributions under £100,000 in the previous tax year.
- Not be a domestic employer, i.e., a gardener, carer, or nanny.
- Not have claimed the employment allowance by a connected company.
- Not have more than half of its work in the public sector (such as local councils or NHS services). The only exemption to this condition is for charities who operate in the public sector were this does not apply.
If you feel like this applies to you or you would like to know more, please get in contact.
