So you may have seen the advert on the telly, or you may have had a lovely letter from 10 Downing Street saying the government’s new employment allowance will cut up to £2000 from your employer National Insurance bill. Around 1.25 million business employing someone will benefit from this new allowance and a third of all businesses will see their National Insurance bill abolished. You must claim this allowance through your payroll ‘just by ticking a box in your payroll software’ and informing HMRC you are claiming the allowance via an EPS RTI submission. This all sounds great, but for some payroll software, it is not as simple as just a tick in the box, but an extra administration process and only certain employers are able to claim the allowance; the criteria of who can claim is definitely not so simple. There is detailed guidance which you should read before you start claiming.
The businesses that especially need to check if they are eligible are:
* Companies with two or more payrolls under the same PAYE reference
* Connected businesses and charities
* Public authorities
* Pharmacies
* Educational institutions
* Domestic staff
* Franchises
* Function either wholly or mainly of a public nature
