Employment Allowance 2015

£2000 Employment Allowance Continues into 2015/16.

The Employment Allowance that was introduced to reduce the cost of employing staff in April 2014 has been extended for another year. Millions of small and medium sized businesses throughout the UK have benefited from this initiative over the past twelve months and it is excellent news for employers that it has been extended to cover the forthcoming 2015 – 2016 Payroll year.

From 6 April 2015, most employers will be able to claim back the first £2,000 of their Employers National Insurance Contribution. The exceptions to this include businesses with multiple PAYE schemes or separate business that are controlled by the same person.

Employers National Insurance is paid over to HMRC for each employee’s earnings over the base threshold of £156 per week (£8112 per year) any earnings over this rate will be subject to Employers National Insurance at a rate of 13.8%

This Employment Allowance reclaim is made each month through the employer’s payroll and the deductions will remove the Employers National Insurance until the £2,000 limit is reached.

Your payroll Services provider should make this reclaim through the monthly PAYE Real Time Information Submission to HMRC.

If you are not currently claiming the Employment Allowance or require some advice on how it should be claimed please contact PGA Payroll Services and we will be pleased to advice you.

PGA Payroll Services provide a full Payroll Service to Small and medium sized employers across the UK. We run your payroll weekly, monthly or whatever frequency that you choose and look after all the administration of payroll leaving you to concentrate on running your business.

You can check whether you are currently receiving value for money by using our Payroll Services Instant Quote Tool.