Am I entitled to Employers NIC Allowance on my payroll?
The Employment Allowance reduces the amount of National Insurance employers have to pay by up to £3,000 per year.
So, can your limited company take advantage of this tax incentive? The scheme was implemented to help stimulate economic growth and encourage small firms to take on more employees. By using the scheme, a company can write off the first £3,000 of its overall Employers’ NIC bill each year (from 6th April 2016; previously the limit was £2,000).
The Allowance itself is ‘claimed’ each month via your firm’s payroll process, as the liability arises. So, no NICs are payable until your company’s entire £3,000 allowance has been used up.