Employer's National Insurance - Good & Bad News!Author: Mark Orr
Over the past couple of years many employers have benefited from the Employment Allowance, reducing the amount of their Employer’s National Insurance contributions by up to £2,000 a year.
The good news is that from 6th April 2016 the Employment Allowance is due to increase by a further £1,000 to £3,000 for eligible employers.Also from 6th April 2016, if you employ an apprentice under 25 years old, you may not need to pay employer Class 1 National Insurance contributions on their earnings up to the Upper Earnings Limit (£43,000). To qualify, the apprentice must be working towards a government approved apprenticeship in the UK, and you will need evidence of this to be able to apply the relief. The bad news is that from 6th April 2016 eligibility for the Employment Allowance will be restricted so that limited companies with only a single director on the payroll, and no other employees, will no longer benefit from the allowance.
The tax tip is provided for general guidance only; further advice should be sought, for specific issues.Holmes Accountancy are Xero Certified Advisers
