Summary and Background Employment Allowance
8.At Budget 2013 the Government announced that it would introduce an “employment allowance” of up to £2,000 a year for all businesses, charities and Community Amateur Sports Clubs to offset against their liability for secondary Class 1 NICs. The Act introduces the allowance and sets out how a person qualifies for it.
9.The employment allowance will be delivered through standard payroll software and HMRC’s Real Time Information system. Employers will self-declare their eligibility through their regular payroll processes and this confirmation will ensure that up to £2,000 in any one tax year will be deducted from their secondary Class 1 NICs liability over the course of the year’s payments under PAYE.