Employment Allowance

HMRC allow most employers to get £3,000 off their National Insurance liability.

Unfortunately, if you employ someone for personal, household or domestic work you are unable to claim this as the employees are being employed in a personal capacity to support the running of a household.

It is important to know the rules otherwise you could end up paying back this money to HMRC.

You can claim on the following:

old age

mental or physical disability

past or present dependence on alcohol or drugs

past or present illness

past or present mental disorder

You cannot claim the Employment Allowance if you are employing a nanny unless the nanny is employed for an individual who needs care because of one of the reasons set out above.

To claim for the Employment Allowance, it will need to be submitted via payroll software by means of sending an EPS (Employment Payment Summary).

Leave a Reply

Your email address will not be published. Required fields are marked *