The latest changes to NI Employment Allowance (EA) have recently been introduced, and there are already rumours of other significant NI changes for employers. Here’s what you need to know.
Tip. For now, you don’t need to take any action. Both HMRC and other payroll software providers will inform you about the introduction of the new procedure at the beginning of April.How to claim the allowance. Whether you use HMRC’s Basic PAYE tools or other payroll software, there is a one-off process in the software for claiming the employment allowance. HMRC say that completing the claim simply involves ticking the appropriate boxes. The software will then automatically calculate the amount you can deduct from the payment you make to HMRC.
Tip. For now, you don’t need to take any action. Both HMRC and other payroll software providers will inform you about the introduction of the new procedure at the beginning of April.
Possible further changes. Another major change aimed at employers has been proposed to the Chancellor. It would be aimed at encouraging employers to take on younger workers. The proposal is apparently being considered by the Treasury and we may hear more about it in the Chancellor’s Autumn Statement.
What we know about the new changes. Under the proposed change, businesses would be exempt from paying National Insurance Contributions (employers’ NI) for a certain period for employees under 25 who have been previously unemployed and this is their first job. If the proposed change comes into effect, it will not be introduced until April at the earliest.
Tip. If you are considering taking on a new employee, it is worth checking the Chancellor’s statement on the proposed changes. If these changes apply to employees hired in the 2014/2015 tax year, you could save money that you would otherwise have to pay in employee National Insurance contributions.
