HMRC updates... they give with one hand and take away with the other!
Employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £2,000. This is called the ‘Employment Allowance’.
This is a great boost for small businesses.
Up to 1.25 million businesses and charities will benefit up to £2000 per year via the HMRC Employment Allowance from 6th April 2014.
It’s easy to apply for the Employment Allowance:
- Make sure your business is eligible check here https://www.gov.uk/employment-allowance
- Tick a box in your payroll software (if your software is RTI compliant and has the ability to submit an Employment Payment)
The benefit is deducted from your Class 1A National Insurance payments. For further information and an eligibility checker about the Employment Allowance click the following link: https://www.gov.uk/employment-allowance
NOT SO GOOD NEWS!
Many businesses were able to recover a % of Statutory Sick Pay (SSP) paid to their employees when they were absent from work. From 6th April 2014 this deduction is to be removed as the Percentage Threshold Scheme (PTS) Ends.
You will still be required to keep the appropriate wages records for SSP for PAYE purposes but the current payroll record keeping requirements for the Percentage Threshold Scheme (PTS) will be abolished at the end of the 2013/14 tax year.
An independent review has shown that the Percentage Threshold Scheme (PTS) has not encouraged employers to actively manage sickness and absence in the workplace and has resulted in the Government reinvesting to fund the new Health & Work Service. -
More info -
How will this new ruling affect your business?
Bright Chilli provide payroll services to where businesses don't have time to process the company wages to clients throughout, Dundee, Angus and Tayside.
We also provide payroll software and payroll training. Our recommended software is Moneysoft Payroll, Moneysoft is easy to use, low cost and Real Time Compliant (RTI) with HMRC.
Please contact Gillian Lindsay on 0844 736 5611 or email firstname.lastname@example.org for more details.