Claiming The Annual Employment Allowance
DO YOU OPERATE A PAYROLL SCHEME?
DON’T FORGET TO CLAIM THE ANNUAL EMPLOYMENT ALLOWANCE
The Employment Allowance enables eligible employers to reduce the amount of National Insurance payable to HMRC by up to £4,000 per tax year.
THE IMPORTANT PART: The allowance is not claimed automatically – you will need to take action every new tax year in order to claim it.
In practice this means you will need to tick or enter ‘yes’ in certain boxes in your payroll software to ensure the claim is applied (or in HMRC’s Basic PAYE Tools).
Further details (including how to check your eligibility and how to claim) can be found at this link:
Please also note if you haven’t claimed for the current tax year or your eligibility has changed since the start of the year, for example you started the year as a director only payroll (so could not make a claim) but during the year you employed a member of staff (now allowing you to make a claim) then you can still make the claim before your final payroll submission in March 2022 for the 2021/2022 tax year.
If CFW prepares your payroll then we will have taken care of this for you.
If you have any questions then please get in touch on 01536 713555 or at enquiries@cfwaccountants.co.uk.
