The National Insurance contributions (NICs) Employment Allowance was introduced in April 2014. It was aimed at reducing the cost of employing people for small businesses.

Eligible employers could claim the allowance from April 2014, which reduced their Employer NICs bill by up to £2,000 a year.

Great news – from April 2016 this allowance increased to £3,000.

It is simply ‘given’ to eligible employers by them not making Employer NI Contributions until they reach the £3,000 threshold.

We’ve only just been made aware of this increase although we’re sure your accountant or payroll bureau have told you already. It won’t matter if you weren’t aware of the increase yet as you’ll be using the allowance within the old £2,000 threshold at this point in the year.

Worth checking if you aren’t sure if you are taking advantage of this…

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