The Employment Allowance was introduced in April 2014, for the purpose of supporting businesses and charities in helping them to grow by cutting the cost of employment. Eligible employers can claim the allowance, which reduces their Employer's National Insurance bill. Previously the allowance has been £2,000, but from April 2016 it will rise to £3,000.
Unfortunately, simultaneously the Employment Allowance will no longer be available to limited companies with a single director, and no other employees.
If you would like any support in managing your payroll, please get in touch. Your local TaxAssist Accountant would be happy to help, and they're already geared up for the new Workplace Pensions laws.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.