Employment Allowance update
Source: HM Revenue & Customs | | 23/07/2015
The employment allowance of £2,000 per year for all businesses and charities was made available from April 2014. The allowance is offset against the employer's Class 1 secondary National Insurance Contributions (NICs) and can be claimed as part of the normal payroll processes.
In the Summer Budget, the Chancellor announced that the employment allowance will rise to £3,000 from April 2016. This means that businesses will be able to employ 4 people earning the new National Living Wage without having to pay any employer's Class 1 secondary NICs.
