Normally, employers can reclaim a minimum of 92% of certain statutory payments that are paid to employees.

If you are a small employer though, and if you pay your employees statutory pay (maternity/paternity or adoption), you are entitled to claim 100% of the payments made plus an additional 3% Small Employers' Relief (SER).

Who qualifies as a Small Employer for this purpose? 
Qualification depends on the employer’s total Class 1 national insurance contributions paid to HMRC in the previous tax year. Normally, your business qualifies for this relief if your NI liability was £45,000 or less in the completed tax year preceding the employee’s qualifying week.
HMRC can confirm your small employers’ relief status.

The ‘Employment Allowance’ is part of the Government's ongoing package of support for businesses in the UK. It aims to encourage the employment of new staff.

From 6th April 2014, employers and charities are entitled to claim back (i.e. reduce) up to £2,000 per tax year from their employers Class 1 National Insurance (NIC). It is expected that up to 1.25 million businesses and charities will benefit from Employment Allowance.

Employment Allowance is for nearly all employers that pay Class 1 National Insurance contributions on their employees’ and directors’ earnings. A few selected employers like those who employ someone for personal, household or domestic work (nannies, chauffeur for example), public authorities aren't eligible for this allowance though.

You can use your own 2014 to 2015 payroll software or HM Revenue and Customs’ (HMRC’s) Basic PAYE Tools for 2014 to 2015 to claim the Employment Allowance. Once made, HMRC would automatically carry forward your claim each year.

An employer can make the claim at any point in a tax year and if the claim is missed in a tax year, has up to 4 years after the end of the tax year in which the claim applies to make the claim.

Should you need further assistance in this area, we would be happy to explain how the Employment Allowance will affect your own particular circumstances. To find out more, please contact us by clicking here