{"id":668,"date":"2017-06-20T00:00:00","date_gmt":"2017-06-20T00:00:00","guid":{"rendered":"https:\/\/slacc.co.uk\/index.php\/national-insurance-exemption\/"},"modified":"2017-06-20T00:00:00","modified_gmt":"2017-06-20T00:00:00","slug":"national-insurance-exemption","status":"publish","type":"post","link":"https:\/\/slacc.co.uk\/index.php\/national-insurance-exemption\/","title":{"rendered":"National Insurance exemption"},"content":{"rendered":"<p>Employers, or more specifically, the persons in charge of processing their payroll, are hopefully checking the box to claim the National Insurance Employment Allowance (EA)?<\/p>\n<p>The EA reduces the employers&rsquo; (secondary) Class 1 NIC bill. If your employers&rsquo; NIC charge is normally more than &pound;3,000, then this is as good as &pound;3,000 additional cash in the bank. If your employers&rsquo; NIC bill is less than &pound;3,000, then the EA will wipe out this employment cost for your business.<\/p>\n<p>So far, so good. Why is there always a but&hellip;?<\/p>\n<p>You can&rsquo;t claim this allowance if:<\/p>\n<ul>\n<li>You are the director and the only paid employee in your company.<\/li>\n<\/ul>\n<ul>\n<li>You employ someone for personal, household or domestic work (like a nanny or gardener) &#8211; unless they&rsquo;re a <a href=\"https:\/\/www.gov.uk\/government\/publications\/employment-allowance-more-detailed-guidance\">care or support worker<\/a>.<\/li>\n<\/ul>\n<ul>\n<li>You are a public body or business doing more than half your work in the <a href=\"https:\/\/www.gov.uk\/government\/publications\/employment-allowance-more-detailed-guidance\">public sector<\/a> (such as local councils and NHS services) &#8211; unless you&rsquo;re a charity.<\/li>\n<\/ul>\n<ul>\n<li>You are a service company working under &lsquo;<a href=\"https:\/\/www.gov.uk\/ir35-what-to-do-if-it-applies\">IR35 rules<\/a>&rsquo; and your only income is the earnings of the intermediary (such as your personal service company, limited company or partnership)<\/li>\n<\/ul>\n<p>If you or your company have more than one registered payroll reference with HMRC, you can only claim the EA against one of them.<\/p>\n<p>The first bullet point will no doubt be the most applicable exclusion, the owner managers of one-person companies, but if you can claim, a simple tick in the correct box of your payroll software should do the trick &ndash; your NIC payments should be automatically reduced until the &pound;3,000 EA has been fully claimed.<\/p>\n<p>Please note, the EA is only available to set off against employers&rsquo; Class 1 NIC, you cannot use this allowance to reduce employees&rsquo; contributions.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>Employers, or more specifically, the persons in charge of processing their payroll, are hopefully checking the box to claim the National Insurance Employment Allowance (EA)? The EA reduces the employers&rsquo; (secondary) Class 1 NIC bill. If your employers&rsquo; NIC charge is normally more than &pound;3,000, then this is as good as &pound;3,000 additional cash in [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-668","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=668"}],"version-history":[{"count":0,"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/668\/revisions"}],"wp:attachment":[{"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}