Employers: Claim your £2000 Employment Allowance

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You may not be aware that if you employ someone for your business, that as of 6th April this year, you can enjoy a little kickback. It’s called the Employment Allowance and it could be worth £2000 to you.

As part of the Government’s various schemes for businesses, employers can claim the Employment Allowance and reduce their employer Class 1 National Insurance contributions (NICs). You do it via your payroll software.

Relevant businesses should have received official notification of this in a “personal” note from the Prime Minister David Cameron. But when I was at Number 10 on Tuesday, it seemed that many of the letters bigging up this scheme hadn’t got through to the SMEs attending.

Obviously, we encourage every small business to grasp eagerly every cost-cut that’s up for grabs. You can find the details on the gov.uk website here.

As an aside, I must note how bad this webpage is at explaining what this schemes is, what the benefits are, who it applies to, how you get it and what it means. It’s turgid civil service prose that doesn’t speak to the majority of firms. Let’s look at the first section called Key facts – who can claim. A more accurate heading would be: Who can’t claim.

Para 1: Factual but dull. And the limp “if…” is the droop moment. At no point does it say – “Come on guys cut your business’s tax bill. Here’s who can benefit. Woo hoo! Look at this great scheme!”

Para 2: Not too bad but give some examples. And why mention the amateur sports clubs? Surely very niche. Bury the small stuff in the small print. Talk to the millions of small employers who need this site for info. (The big employers already have lawyers dealing with this sort of thing.)

Para 3: Now we’re just confusing you with some stuff about company groups (and company groups have lawyers). Almost certainly not relevant to the vast majority of small businesses. Who are now just really not enthusiastic about this scheme.

Para 4: More exclusions. Multiple PAYE schemes? Anyone still awake?

Para 5: If you weren’t already back on Facebook. Here is the link to the list of everyone who is excluded. Bring in a marketer. Where is the list of everyone who is INCLUDED? Would it kill you to get some people excited about the £2k they can not pay? Apparently not. Zzzzzz.

One Response

  1. I was a ‘little’ excited by this news, soon squashed as my accountant told me there is no longer support for SSP payments from the Gov, so this cuts some of the £2k away depending on your staff sickness.

    Also with the minimum wage rise a lot of small business will also loose the £2k bonus away in that as there a number of small business that can only afford to pay minimum wage for some staff.

    Give in one hand, take in the other I am afraid.


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