Employment Allowance

[AccountEdge Plus and AccountEdge Plus NE only]

The ‘Employment Allowance’ allows employers to reduce the amount of NI contributions they pay for their employees by up to £3,000 and is available for the payroll year 2018/19.

Employer Allowance is for nearly all employers that pay Class 1 National Insurance contributions on their employees’ and directors’ earnings. This includes:

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businesses

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charities

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community amateur sports clubs

If your company belongs to a group of companies or your charity is part of a charities structure, only one company or charity can claim the allowance.

You can only claim the £3,000 Employment Allowance against one PAYE scheme.

How to Apply for the Employment Allowance

Go to the Setup menu and select Payroll Information. The Payroll Information window appears.

Select Employment Allowance and confirm the month that you wish to start claiming your allowance. For most employers this will be M1(April 2018).

Click OK. You will be asked if you wish to send an Employer Payment Summary to HMRC, informing them of your intention to claim Employment Allowance. We recommend you send this EPS now.

note : Important

You must send an Employer Payment Summary to HMRC indicating your wish to claim Employer Allowance before you start reducing your Class 1 NIC payments.

How to Claim your Employment Allowance

Go to the Command Centres menu and select Payroll, then click Employer Payment Summary. The Employer Payment Summary window appears.

Enter the necessary information required, then select Employer Allowance.

Click Next to continue with the Employer Payment Summary submission.

When you make your claim, you must reduce your employer Class 1 NICs payment by an amount of Employment Allowance equal to your employer Class 1 NICs due, but not more than £3,000 per year.