Employment allowance

 

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On 6 April 2014, the government introduced employment allowance. This enables businesses and charities to reduce their employer Class 1 national insurance (NI) contributions by up to £2,000 per year.

Note: If you're eligible for employment allowance and your business has multiple PAYE schemes, you can only claim for one PAYE scheme. To ensure that you can claim the most of your allowance, you should pick a scheme where you think you will most likely have at least £2000 of employer Class 1 NI liability. You must advise HMRC which scheme you're claiming employment allowance for.

Find out more about employment allowance at www.gov.uk


Setting up your software

If you're eligible, Sage 50 Payroll can automatically calculate and record employment allowance for you.

1. Company > Settings > Details.

2. Select the Eligible for Employment Allowance check box.

3. When prompted to submit an EPS, click Yes and follow the wizard.

Once you've submitted the EPS, Sage 50 Payroll will begin to calculate employment allowance and record this on your P32 and in Company > Settings > HMRC Payments. Find out more.

Note: Employment allowance is only calculated on periods updated after you've submitted the EPS notifying HMRC that you're claiming it in this tax year.

 


 


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